The Brains Trust, page-119

I have a little bit of history with SLR having first bought at $3 more than 4 years ago when it had a market cap of $1B which significantly exceeded NST for example. Management made some very poor decisions and burnt a lot of shareholder wealth as it went all the way down to 15 cents. SLR blew it all in the good times on marginal assets and takeovers. NST on the other hand operated one mine well and used the downturn to pick up cheap top tier assets, and repaid the debts on the acquisitions within 9-12 months.

I guess my main problem with SLR is that they are still paying the price for those poor choices. Some of those responsible are still on the board too. The other thing is if the Australian dollar does tank (I think quite possible) SLR have sold off (for next to nothing) most of the marginal assets that could make the stock worth buying in that scenario.

I think important to understand the history in this company hence the backstory. The rebalancing I reckon also created demand for SLR in the preceding weeks which gives an impression of strength in the share price and chart that isn't warranted by the fundamentals. Exactly same as PRU, although I don't expect any really nasty numbers from SLR that could cause it to drop like that.