Zinc Investing News

By Heather Matthews - Exclusive To Zinc Investing News

Despite the passing of the 700 billion dollar U.S. Treasury bailout plan, investor confidence remains extremely low as sellers are choosing to offload commodities, including zinc metal and lead metal, at a rapid pace. As of October 6/08, spot prices for zinc and lead have plunged 4.53 and 6.10 percent, respectively. This commodity sell-off is affecting zinc and lead companies as well, with lower stock quotes across the board. The price of oil is also dropping rapidly, affected by a stronger US dollar and worries about demand based on the troubled global economic climate. Gene MacGillian, TFS Energy Analyst analyst, has this to say about the current crisis and dropping prices of commodities: “The negative sentiment that is growing in Europe is definitely having an impact. The dollar going up helped oil start on a down note. People are looking at how far it will drop rather than looking at a technical rebound.”

Today, the market atmosphere was tense as European banks faltered in a now-familiar pattern, very similar to the failures seen in the United States over the past three weeks: governments in Europe are being asked to contribute assistance to these banks as well. Investors remain very nervous, and the Dow Jones suffered huge losses today as stock owners rushed to sell off their holdings. By market close, the Dow Jones has declined 800 points.

The bailout plan adopted by the House to aid banks and investment houses in America is no longer viewed as a cure-all by investors. Many analysts feel that the bailout will not stop the flood of market problems: they are not secure in the US government’s ability to administer the plan effectively. According to Dan Genter, Chief Executive Officer of RNC Genter Capital Mgmt., “Everybody thought that the bailout was a panacea. But it’s not. It’s a tourniquet that stops the bleeding so the patient doesn’t die right away”. These gloomy assessments of the stock market crisis and the resultant bailout plan have frightened already-nervous investors.

Lead and Zinc Company News

Horsehead Holding Ltd (NASDAQ:ZINC)- This company announced plans to decrease zinc production in early September, as worsening demand for zinc metal combined with dropping prices on the LME. Horsehead is North America’s largest producer of zinc oxide and zinc metal (Prime Western) . They run operations at many locations in the United States. Currently, Horsehead stock is down a whopping 11.98% over yesterday’s close, with a current bid/ask of $4.74 USD (Oct. 6/08) on the NASDAQ.

Sterlite Industries Ltd. (STLT:IN) - This Indian company produces more zinc and copper than any other national concern. Today, its stock fell to a 24-month low of 335.50 rupees per share. This decrease is a 15 percent drop over yesterday’s close. Sterlite has been suffering for some months as problems with low demand have impacted stock quotes. In September, Sterlite announced a plan to merge with Madras Aluminum; this restructuring has made Sterlite stock fall as the company has demerged its energy business.

Bard Ventures Ltd. (CA;CBS) - Bard Ventures Ltd. is one of the few zinc and lead producing companies to show improvement in their stock performance recently. As of Oct. 6/08, Bard stock is selling at 10 percent higher than it did yesterday. The current share price for Bard Ventures is .055, an increase of .005 from yesterday. Bard Ventures does exploration and mining at the Lone Pine Property in British Columbia, Canada.

For more information on dropping crude oil prices, please visit our website, www.crudeinvestingnews.com