Momentum, resi and stoki climbing for the past couple of weeks, coal index up yesterday as well, so i do not think it shall break down. Allthough macd does not confirm it, so there is conflict on that front, maybe more of the same indecision again. General miners are up this morning, lets hope it shall pull sentula along.
It's trading at quite a discount to tangible net asset value. PE 5,4, earning yield looking good, but you never know with this type of spec share. It could go either way. Massive volume in the first 45 min this morning.
The downside is probably limited...but patience is required. The March F10 result will still be dreary, but the prospects statement will be postive and eventually lift the stock out of its rigor mortis...
I really like this stock, and I think the risk to a contract miner is less than the mine owners, IMO. Debt is really high, but the sale of the Kroonfontein asset will bring this in check. I have already bought, with a view to cost averaging every 20% down (unlikely), if the opportunity arises for picking up cheaper stock.
Skaap, very interesting that you are looking here at SNU. Peter Major from Cadiz said he would be backing this one way back in January 2010 and thus far has had a stable price and as you point out seems to be set for a break. This is very likely a nice longer term share for a little wealth creation and as you point out debt will be well managed after their sale, so yes i would aslo look into this share at this stage. Been following it for the last few months and am happily surprised with it.