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Don't dawdle Amaryllis


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Michael Quinn had an insightful piece Sept. 11, 2008 on how Perilya's deal with CBH "went south", partly because in taking so long to close the deal, the economics of the zinc market stepped into the express down elevator and sent the parade to the finish line "south".

 

To a certain extent, ZincOx appears to have stepped into the same express down elevator. There are of course different factors at work here: a zinc and iron play that was really a technology play, in which the players were slow to identify all the pieces, reject those not ready for prime time and pull the rest together, but also in that they presumed a parade to the finish line. However, dawdling on the deal had similar repercussions. And similar impacts on stock price.

 

For those who feel that maybe given the plummeting zinc price, a dead deal might not be so bad afterall, keep in mind ZincOx is also an "iron play". And iron ore prices have doubled in the last 12 months, and scrap steel ditto. By taking so long and falling into the zinc price down elevatror, they have perhaps missed (and changed the economics for) catching the express up elevator of iron prices. For those others who feel that all this is just the vagaries of the business world, please go back and read other postings on ZincOx. Based on which to the "don't dawdle" line from "The Music Man" might be added the "Have you done your homework" line from an old Bill Cosby skit.

 

Augurelli

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