Think like Warren Buffett? As far as I can research, WB never bought a coal company. And he was so right. In hindsight, one should never buy such companies, definitely not ones where managements make very tall claims (buying back 75 million shares) with zero execution.
The last bit makes me increasingly angry and cynical. Maybe they think slower and act even slower in Kiwi land (given that it is now 6 weeks since the claims were made)...but BRL has mostly non-Kiwi shareholders. Based on current valuations, a share buyback would generate a return of 25% on capital for BRL. Tell me how many projects in the world make that kind of return? Sure, if they wait another 12 months, then the return on a buy back would go up to 33%...based on your post, I am sure you can afford to wait 5 years (and get 100% returns on share buybacks)...not me pal! I have better things to do.
You talk about price...but you completely missed the other key market action...volumes. Before your Singapore boys ever showed up, BRL DID exist...and there were 800 million shares before 2015. They traded an average of 5 million shares a day. Today? Barely 1.3 million shares. Now those 800 million shares did not disappear into outer space. They are sitting all over the place in various retail accounts. Never mind the price, the volumes are telling you what a laughing stock the share price is...people have "forgotten" they even own the shares! And why are we here? How about confidence in BRL management? To me the real test is not just price, it is also volumes. Until we get back to at least 4 million shares a day trading volume, this is a "forgotten" company.
Wasn't it so nice that RIM etc. kept BRL public? I think you miss obvious points. First, why take a company private...it is not easy to list a company again. Second, they too need an exit! Just like the rest of us schmucks. In case you did not notice, RIM was selling shares into the market...at 11 cents! They clearly did not feel like WB, selling at 11 cents when they could have be done at 20 or even 30 cents.
And frankly, I wish they had taken BRL private. I for one would have never noticed, and therefore never have had to buy a share, and never had to spend half my time on 5% of my assets. They say that it is 20% of your portfolio which costs you 80% of your time/stress etc. Ignorance would have been unknown bliss...instead of having to wonder about management motives/competence.
BRL has done a private equity turn around of Solid Energy? I think you really don't know how state owned companies are run...very badly. This is true of every single country I have looked at...it does not matter if it is Canada, China, India, Europe, USA. Without fail, these are companies which have Rolls Royce infrastructure and terrible costs controls...or should I say, Rolls Royce costs. Any half decent private sector executive can go in, and make the most obvious changes to easily cut costs. BRL is a mining company...geology is key. And Stockton is as good as they come. It had $150 million worth of infrastructure already there. Tacon & co know something about running mines, but I would hold the applause...given what I know of state owned companies. What you also missed is that Solid did not go to zero coz of whatever reason...it was the balance sheet which did Solid in. Perhaps you may want to google "Political reasons why Solid Energy went bust"?
Day traders? You really don't understand financial markets. There is a reason for day traders to exist...and just to explain why you are clueless, there is obviously ZERO day trading going on in BRL. 1 million shares a day at 11 cents...may be Mr ExpatSingapore can do day trading with such action...but not most of us. Only the shareholders who need to raise cash for whatever reason, are left as sellers. Just like invoking Warren B, you are better off doing some basic thinking before coming up with your holier than thou pronouncements...which just shows the rest of us how clueless you are about WB and day trading and state owned companies etc.
BRL Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
