Horsehead (ZINC) Stock | Jockeying For Position

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Horsehead Holding Corp (NASDAQ: ZINC)

 

ZINC, a producer of zinc and nickel-based products sold primarily to customers throughout the United States and Canada, surged today on news that competitor Glencore announced it will cut its production by nearly a third, or 500,000 tons.  This news drove up the price of ZINC, which at one point was up over 33% on the day, its highest point in three weeks.

 

ZINC Technical Analysis

ZINC

ZINC gapped up in price today 23.54% to $5.51, a $1.05 increase. Looking at the chart, we see that it has not traded this high since September 18th, when it traded at a high of $6.08. Volume today was a massive 15.3 million, compared to the average volume of 1.8m for the stock. ZINC closed well above the 20 day moving average of $4.34, and is in the upper range of the companys’ Bollinger Bands.

 

Horsehead Holding Corp Recent Financials

On 08/07/2015 Horsehead Holding reported 2nd quarter financial results.

The company reported a consolidated net loss of $3.6 million, or $(0.06) per diluted share, for the second quarter of 2015 compared to a consolidated net loss of $5.1 million, or $(0.10) per diluted share, for the second quarter of 2014. Results for the quarter, adjusted to exclude favorable non-cash adjustments associated with hedges, was a consolidated net loss of $12.4 million, or $(0.22) per diluted share, compared to a consolidated net loss on the same basis of $3.2 million for the second quarter of 2014, or $(0.06) per diluted share. New York Times

 

ZINC CEO Comments

President and Chief Executive Officer Jim Hensler commented on the 2nd Quarter results:

“The quarter reflected lower shipments of zinc metal compared with the prior year’s quarter, due in part to sale of the remaining inventory from the Monaca, Pennsylvania facility in the prior year’s quarter, offset partially by an increase in metal shipments from Mooresboro and higher brokered metal sales in the current quarter. The financial impact of the shortfall in shipments was partially offset by continued solid demand for our zinc calcine, completion of the sale of the Monaca property to Shell Chemical and higher LME zinc prices. Production of finished zinc products increased 7.6% compared with the prior year’s quarter, reflecting the transition of zinc production from the Monaca smelter to the Mooresboro facility in the prior year’s quarter” Seeking Alpha

 

Company Profile

Horsehead Holding Corp., together with its subsidiaries, produces and sells zinc and nickel-based products primarily in the United States and Canada. The company operates through three segments: Horsehead, Zochem, and INMETCO. The Horsehead segment processes electric arc furnace dust and other zinc-bearing material to produce and sell zinc and other metals. The company’s products are used in the galvanizing of sheet and fabricated steel products; as components in rubber tires, alkaline batteries, paint, chemicals, and pharmaceuticals; and as a remelt alloy in the production of stainless steel. It also provides short-line railroad services for the movement of materials. Horsehead Holding Corp. was incorporated in 2003 and is headquartered in Pittsburgh, Pennsylvania. Yahoo Finance

 

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