I have always had high hopes for a SNU recovery. It has uncomfortably high debt, but the sale of their coal mining assets will greatly offset this. Currently SNU trades at a PE of around 5, but consider that almost half of their operating profit went to paying off debt installments and interest. The Kroonfontein sale will bring their debt levels to a point where it can get renegotiated, and should take care of their 2010 installment. That will provide significant retained earnings to get rid of 2011's installment, and put SNU firmly in the earnings driving seat. And best of all, the coal mining business wasn't even firing properly, so it is not that they are likely to take a knock on the top line. Sadly though, SNU is dragging down my portfolio, and its one share that doesn't quite fit my risk profile - I think I am going to have to offload it
