Waldo you make a good point mate, i dont dispute that at all, but the question is how long will these commodity prices stay low for before an imminent bounce upwards
the laws of supply and demand dictate prices and prices are a barometer of scarcity. therefore if coal remains scarce in SA then it seems logical that the bargaining power would be in the hands of RES rather than ESKOM or any other buyers imo. its especially helpful if youre sitting on over a billion tonnes of the stuff and have access 40km away to power stations.
my point is that while the world has its issues there will be no demand for investments in such stocks. thats a given and we all know that. however 'when' and not 'if' commodity prices rise again then RES will be in a superb position to offload its resources and obtain a cash flow into the business pretty quickly compared to other speccies.
$12 million in the bank, more resource upgrades, experienced management and a supply contract already in place, mate to be honest I cant see the long term downside at all
i understand if youre a trader, and i sympothise with you, but this stock is a long termer (at least 18-24 months) so let PJ do his job and let him do it well. Xstrata didnt buy out the previous company he managed overnight. It obviously took a while to build like any other billion dollar business does
the thing that burns me the most is that as the world economy is collapsing around us right in front of our eyes people on hotcopper threads dont stop blaming the companies theyve invested in. i mean its not their fault. company fundamentals just dont change because wall street is on its knees.
i think some people need to reflect on the initial reason theyve invested in RES to help avoid petty conflicts like this
just my opinions, criticism is highly welcomed
cheers TD
RES Price at posting:
$1.20 Sentiment: LT Buy Disclosure: Held
