Sentula has high debt levels, but then that is not abnormal for this company, because borrowing for their contract operations has always been a part of their business model. Now with the sale of hteir Kroonfontein mine, that will reduce quite a chunk of debt and revert them back to the operating model that they had before their demise. That model was quite profitable, but I think that institutions are probably too afraid right now to enter into highly geared companies, but htis is just IMO
Following the Nov'09 rights offer and the Koornfontein colliery sale, net debt will decline to R610m - gearing ratio of 24.7% on a tangible asset basis. The R500m rights issue was 90% oversubscribed by various institutional shareholders incl. the PIC, Coronation, Stanlib and Investec Asset Mngt.
Ja that's right, about my calculation as well. Which places TNAV at around 375cps - so it is trading well below NAV at the moment. I guess the only risk to way up is the business model, which I personally think is pretty sound
So sentiment is keeping the share price subdued. They've done well in cleaning their act esp the debt gearing. I must check the fundamentals. I've placed an alert at 300c as I believe it will be at this point that the bull will be confirmed
The chart looks interesting.I think it is gearing up (no pun intended) for a break out of a symmetrical triangle.This could take it out of its bear trend which could lead to take-off.Some might prefer to wait for the breakout,but I think it's close.omo
I agree. I have bought some of these shares initially based on the fundamentals and under valuation. Concur that technically a breakout looks imminent. Maybe it will add some excitement to a rather lacklustre market.
The larger symmetrical triangle is getting squeezed.Tomorrow I see support at 280 and resistance at 290 (which happened to be the low and high today).I see 290 as the resistance of the bear trend since its high on 11 June 2009,so I would like to see a close above that.