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

Might have to let this one go

Reply
Not applicable
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
0 Kudos
1 REPLY 1
Regular Contributor
I have the same dilema and im sorry i do not have an answer for you I am only 10% down though and will get out at a 15% loss
0 Kudos