Since the merger was announced zinc has slipped ~37%. OXR/OZL's SP reached $3.97 on Feb29 & today has fallen as low as $1.85 or ~53%! On the chart below the pink lines show support / resistance trends & 'C' marks March 2. The circled numbers 1,2,3,4 & 5 refer to Elliott Wave points.
IMO factors other than the zinc price which may have impacted on the SP include: . The RBA increased rates, the economy slowed & sentiment for the sharemarket in general soured. . The rippling effects of the credit crisis & oil price surge, including the 'Greenspan factor'. . China took its foot off the gas prior to the Olympics. . The drawn out merger process itself - uncertainty during a tumultuous period. . The Feb29 $3.97 was partly fuelled by takeover speculation . Native & covered shorting of stocks. . Big stakeholders including AXA, Barclays & Merrill Lynch have disappeared from the list of Top10 investors, some following recent announcements of major losses:
IMO a turnaround in the zinc price will have to challenge these factors & others. Meantime of course OZL has become cheaper to buy for those with the means to do so.
4YIO - NFA
OZL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
