warbucks

Got Zinc? The Long Case for Horsehead Holding

With zinc at 50 - 55 cents per pound now, I'm guessing even with the hedges, Horsehead will not be profitable in 2009. The hedging in 2009 is only for half the amount of zinc as the 2008 hedges so they are way more exposed to market prices.

What are your thoughts on the above? Are you still holding your shares? Are you buying more at 50% of what you paid?

Why Downey Financial is Not IndyMac

The author of this piece is either not very bright, or he knows better and is intentionally trying to mislead investors. I am flabbergasted that a man with his bio would make such foolish mistakes in analyzing a stock.

That DSL's market value is 6% of their alleged book value, does not mean they could take a 94% write down of assets and still be ok (as the author implies). DSL's book value is less than 10% of assets, so a 10% write off wipes out all value in DSL equity. Most observers believe DSL will have to write down way more than 10% of their toxic loan portfolio when all is said and done, and that is why it is trading at almost zero. DSL already has over 18% non-performing assets and growing.