Undervalued?

[#1]

Even though the share price has dropped a bit since I last bought, I feel I should hold onto my CZA shares, the shares are looking undervalued compared to the "hay-days" of between 1000 to a high of 3569c per share during mid 2008 (which is not that long ago). Following the Warren Buffett principles, one should by low undervalued shares and sell high. CZA has a BEE deal in place and a contract with Eskom to supply coal to prequalified powerplants (as per article: http://newyork3.absol.co.za/pebble.asp?relid=47926 ), combine this strong position with an impending rise in coal and electricity demand while growth gets stimulated as we head towards 2010 and as interest rates drop further as forcasted for this year, making for good grounds for a rally in the share price this year. In addition, the current undervalued share price should start showing support levels soon and hopefully a rally upwards with some great rewards for the long term investor. Does anyone else share this sentiment?

[Plonky]

Good Morning.... I see you were up late last night .... I have been following CZA for a long time now, and unfortunately at this stage seen a lot of losses. They are good at providing positive announcements about the company, and they actually do have a lot of coal resources, particularly in Limpopo. They have done the right thing with BEE, they have serious invetsments from Mittal and Mvela (i think), so I would like to think they sit in a positive situation. Market sentiment will obviously affect the share price, as will the prevailing coal prices. They are also "cash-flush", which will facilitate the development of their new mines.

[#3]

Great, thanks for the positive re-assurance. I initially picked CZA with a long-term strategy of minimum 6 months so was prepared to weather the ups and downs in the interrim. Have a great weekend.