top news stories from the drc, page-8

  1. 13,575 Posts.
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    My line of reasoning nous is to find explanation as to why the market will not reduce the risk factor in this stock.It may well do so when stage II is up and running and the balance sheet become more robust.You can try and reason as to why the stock risk factor should be lessened but it appears the market is not willing,at this stage anyway,to do so.I wondered, for at least a year, as to why that 60% risk reduction was not factored down considering that all the problems are more than 1000Kms away in the Nth East.The only conclusion I could come to was the market is NOT willing to believe that the political situation is stable enough.If this is so why would there be a change in this attitude considering they are to utilise an interim government with four VPs,not what you would call conducive to stability seeing they are made up from previous rebel leaders,and then move to a democratically elected government which will require the breakdown of ethnic and ratial problems even between neighbouring peoples.Whilst the interim government is installed and it is seen to be stable then it should be a period of relative stability for the political environment in the DRC as there will be little change in current laws and regs.But as they move towards a democracy there could be doubt as to which way the country will move politically.With any luck the interim government will not see this as a time to sit on its hands but to use it constructively in solving the many problems that need to be overcome before the country could be termed relatively politically stable.

    I do agree things have improved and moved ahead tremendously in the DRC but they also have a very long way to go before analysts will be willing to reduce the R factor.We'll see anyway.It interests me as this is probably the one greatests hindrances to this stock although there should be little considering its potential.Just trying to keep my mind open rather than have that glazed over sleepy look about the stock.


 
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