Nyrstar out of Australia?

Nyrstar NV is the world's largest producer of zinc metal and alloys, and in addition, is one of the world's largest primary lead smelting and refining companies. The company produces other valuable by-products including copper, gold and indium, along with significant quantities of refined silver. In 2007 Nyrstar produced more than one million tonnes of zinc. Incorporated in Belgium and with its corporate offices in London (United Kingdom) and Balen (Belgium), Nyrstar has wholly-owned operations in Australia, Belgium, France, the Netherlands and the USA and joint ventures in Australia, China and France.

From Dow Jones: Global No. 1 zinc and lead producer Nyrstar (NYR.BT) could close its smelting operations at Port Pirie in South Australia state and Hobart, Tasmania if Australia's emissions trading plan goes ahead in its current form, Nyrstar Chief Operating Officer Greg McMillan said Thursday.

Under the plan, Australia's zinc and lead industry - unlike aluminum and steel - won't qualify for assistance to shield trade-exposed industries from increased costs.

"We cannot pass on higher costs because we produce globally traded products that are traded on the London Metal Exchange," McMillan said.

Nyrstar's two smelters generate A$2 billion in export revenues annually and employ 3,250 people directly and indirectly.

Australia's government seeks to start its emissions trading scheme from 2010. Copper and nickel smelting operations aren't covered by transitional assistance for the scheme either.

"The other issue is that of carbon leakage. The supply that would be cut here will be taken up by other countries with less stringent rules and will produce more carbon emissions," said McMillan, adding that Australia's lead and zinc smelters adhered to the highest environmental standards.

China's zinc smelters emit on average 6.8 metric tons of carbon dioxide per ton of zinc production compared with 2.6 tons of CO2 per ton of zinc in Australia, Nyrstar said in a statement released Wednesday.

"Although Nyrstar supports the Australian Government taking action on climate change, it believes that until all major emitters, including the U.S. and China, face similar carbon constraints and there is a level international playing field, Australian trade exposed industries, like zinc and lead smelters, will require assistance if they are to survive," it said.

Will Australian politicians chose to maintain the 3,250 jobs or will
they stick to the emission plan?

Livanos Peter G.: Euronav Buy

Euronav is an owner operator and manager of ocean going tankers dedicated to the safe and reliable transport of crude oil worldwide. Euronav's Fleet is one of the youngest in the industry and is entirely double-hulled.

The day before yesterday (29/10) Livanos Peter bought 71.200 shares of Euronav for a price per share of 11 euro. He is an independent director and a member of the audit committee of Euronav.


The stock had severely fallen down from 28 to 11 euro in less than 2 months. However, the results were promising. The net income per share was USD 3.05 year-to-date.

As Mr. Livanos is a respected man in the business of maritime societies, why wouldn’t we follow his path?

(source: Euronav.com)

Selling Losses

When buying shares of a company, you are eager to make profit. After share prices go up, you rapidly sell with a modest net profit. If share prices decline, you will do the opposite: you will most likely hope they will rise again. Don’t, you will lose more money. That’s why I think that, on every stock you have you should place a stop-loss. For example, if a stock is currently valued at 100 euro, set a stop-loss order at 90 euro. This will sell your shares after the price goes below the stop price and reduces the chance of making an even greater loss.

Dimi

After 13 transactions

From February until May 2008 I made 13 transactions, buying and selling shares of six different companies: Umicore, CMB, Nyrstar, Fortis, EDF and Metris (all Euronext). When making so many transactions, costs pile up and net profit decreases. I tend to sell share when I make a few percent profit, to be sure not to loose. But when I do loose, I have the tendency to hold the shares, hoping to make profit after all. Fortunately, the shares I bought rose during this period of time. Now, I've learned not to sell shares as quickly as i did before, giving them the opportunity to raise more. When share prices fall 10%, I usually sell them. Selling with a loss is not easy, but a stop-loss could help you make the decision. Don’t look at it as a defeat, but as a new opportunity to buy shares of more promising company!

Dimi

Why I created this blog

I'm a twenty-two year old student from Brussels, Belgium. It has been five years ago since I bought my first shares, Omega Pharma (Euronext Brussels). My bank gave me less than 4% interest on my bank account and I wanted to get more out of my money. That's why I thought buying shares on a stock exchange was a logical choice. The first problem I encounter was that my costs of transactions were exceeding my profits. Now, I have a bank account at a smaller, online bank, which permits me to reduce my total costs.
I created this Blog to show beginning traders, as I still am, the mistakes I made so they could learn from them. I will write about shares in my portfolio and tell you why I sell, buy or hold them. Please tell me if I’m wrong!

Dimi