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Online Share Trading

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Buy or Sell?

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Faghrie
Occasional Contributor
Anybody like to share their thoughts on this share? I think that Mooiplaats will eventually get sold even if the deal with Blackspear has lapsed. Buy or Sell?
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4 REPLIES 4
Vasilis
Contributor
Firstly lets start with the general market. It's becoming bearish and will be something to consider when wanting to buy at present. This will influence all shares good or bad. Now to Coal. This company is busy setting up for their big future development viz Makhado. Until this comes on line with Vele their other mine they basically have no real earnings. However if you look into the future and believe that things will get better, ie overseas markets expanding thus increase in demand for power and steel, then Coal is a good investment to make as it is now in the basement, price wise. The investment, however, will have to be for at least 5 years before good returns will be made as a lot of factors need to come in place ie less strikes and wage demands which disrupt productivity and overseas demand for coal must be in place. If all these factors materialise Coal is a good BUY at these lower prices. You still have to use discretion and be aware of all conditions while holding or buying.
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Plonky
Super Contributor
Do some research on the coal deposit itself.... The coal has very low yields, and has high costs associated with transporting the coal to the ports. Lots of other complicting factors like dipping seams as well which make mining difficult.
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Faghrie
Occasional Contributor
Thanks guys ;)
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Vasilis
Contributor
It was reported that Sibanye Gold is looking to purchase a coal mine. Could be great if they decide to buy Mooiplaats.
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