The future of AZJ, page-296

Hi there

I've looked at AZJ before getting into it. I've tracked this company for years and for the first time in this many years it has been in a buy range.

I can explain it's all 3 business components in detail or just put a value on its share price.

Let me try to unpack your argument without throwing numbers at it.

Coal and China : Australia is a small market supplier (2%) for China and when someone buys coal for their plant, they have to retrofit the factory to use that type of coal. As for the chemical properties, cheap coal may not provide enough energy thereby resulting in additional expenses for its user and then cheal coal and volume consumption plays out differently. Coal is a "battery" and so is "oil." There are a lot of countries that would take our coal happily at a premium price. China just happens to be close. Japan would love to buy all but they need to retrofit their factory first. This uptick in price is thanks to China. They are net importer and Australia is net exporter and the rest in history.

Value trap: If the company is in bad shape and then it is. Where do you see AZJ as a trap? Is creation of $740 million a year a bad thing?

I rather buy shares in a company where money is generated than other dummies which are still on our exchange who do clever gross profit accounting to show fancy numbers and at the same time can't make money. But the founders are cashing in their ferraris before turning profit for shareholders.

I don't know how long you've been in the market, but I can almost smell it when someone is hyping something.