Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

MRF

Reply
Trevor_Smith
New Contributor
Why is this share not moving. It seems to have so much potential?
0 Kudos
7 REPLIES 7
shailen
Contributor
I hope it does. I have quiet abit invested in this company
0 Kudos
SimonPB
Valued Contributor
well maybe it doesn't actually have potential ?? certainly I don't see any potential ..
0 Kudos
Quakedog
Super Contributor
me either
0 Kudos
shailen
Contributor
What do you base your assumption on Simon?
0 Kudos
SimonPB
Valued Contributor
well the trading update says it all .. bigger issue is costs and the fact that they are the minorty share holder in their only asset .. frot position to be in, especially seeing as lots of cash is needed to expand ..
0 Kudos
Not applicable
Yip - nail on the head there Simon. Minority holder of their only asset. So when Eskom ups the electricity price, or even threatens to do so, the majority shareholder is totally likely to take the raw product to other furnaces around the world - and they are not obliged to even take the product at spot prices, since they can set their own - or at least that has always been my concern with MRF. As for their much vaunted cash position - they ain't got none. They have been burning cash for years now. Poor margins, poor cash flow, strategically poorly placed and lagging the resource boom.
0 Kudos
shailen
Contributor
Thanks guys for the feedback. Much appreciated.
0 Kudos