Horsehead Holding Corp.

ZINC pitch long Grant W. Bowman

Thesis

ZINC is the lowest cost producer of specialty zinc and zinc-based products, benefiting from a unique refining process that allows them to acquire feedstock at a negative cost. Despite recent declines in zinc prices, the long-term outlook is positive due to the closure of competing facilities and ZINC's strong cash position, which constitutes 70% of its market cap. The stock is currently trading at approximately 40% of book value, presenting a significant upside opportunity.

Did it work?

worked confidence: high

The stock has appreciated by 487.3% since the pitch, which aligns with the long thesis that ZINC is undervalued and positioned well in the market. The significant increase in price, coupled with the company's strong cash position and unique refining process, supports the thesis that ZINC would benefit in the long term despite short-term fluctuations in zinc prices.

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