Is this a case of where there is smoke there is fire

[#1]

Contractor suing them for lack of payment - claims there is no coal in Khanyisha. Wescoal issued a statement at the begining of the year that they will lose 1 quarter of production because of rains. So 2 bits of bad news - the one temporary, the other serious. Which one to believe? I chose caution - and have exited my position

[Pepi]

skaaaptjop - do they not have a strong balance sheet? i have them for the medium to long term - food for thought tho. BTW, what did you switch to?

[no_money]

Have exited as well and switched into Keaton.

[#4]

Still holding my cash - exxaro and optimum are looking good on the pullback, normally I prefer to invest in the juniors and trade the majors. WRT their balance sheet - resource stocks assets are basically their reserves no? So if their reserve statement turns out to be horse manure, then how do you value their balance sheet?

[Pepi]

skaaptjop - doing the same ie invest in juniors & trade majors and talking of Majors, i mailed Cadiz where i origionally got the info to buy WSL and mentioned your thoughts - this is what he had to say .... I tried phoning the MD who I know well & trust. Most contractors you have to watch like a hawk 24/ 7. Iâ_Tve been buying Wescoal on the drop. Switching after a fall is a losers game.

[dbm]

I also trade Majors and invest in Juniors. I have had this one a while. I have decided to buy at 85. Things do not look great all round. I am taking chances picking up SAN at 23, PKH and even WEA at 14

[#7]

So Pepi, what did they actually say? And switching after a fall is not necessarily a losers game, if there are structural problems with your stock, then your downside risk becomes larger than your upside recovery. Wescoal is starting to look like it has structural problems. I hope I am wrong

[Pepi]

skaaptjop - i agree with you re switching coz iv'e done it more than once before. There does'nt seem to be much structurally wrong (i hope)anyway my guy (PM) must have got thru to the MD - here is what his 2nd mail said, so it seems there is a little smoke but we need time here "" The world is too addicted to coal to give it up in â_~ourâ_T lifetime! And the Wescoal guys have lost much more in this argument than you & I. So they are going to work hard to correct it asap"" thanks for your input skaap - btw i also have PAN & EOH in my longer term, your views?

[#9]

I would run for the hills if that email came from Wescoal - it is a classic diversionary response, skirting the question and talking about global demand blah blah blah. No substance to the issue at hand - do they actually have any coal? Kind of a key requirement if you want to capitalize on global demand!

[#10]

I still recon there is something wrong with this company. Consistent fall in profits - and the contractor is still trying to liquidate them. I would be happy to discredit an unsrupulous contractor, if wescoal was making the numbers, but if they are not...??