CZA(coal of africa)

nessjw

Hi to everyone, lam new to shares etc, and have been trying to get as much info as l can.....I brought shares in the above co, all info seemed postive, though the shares are going down, and lm not sure wether to hang on in there, or what? any advise would be great...l know l have a lot to learn, and investment in shares etc are a gamble, though it would be a great start to know if lve missed something on this company, then l can put that into a 'learned curve' (or down to experience and move on ), as l still have a lot to learn, but hopefully not, the too hard way On a postive note, l have enjoyed reading your threads and advise....so some good in my invest venture :T

cloud_dog

nessjw wrote: »

Hi to everyone, lam new to shares etc, and have been trying to get as much info as l can.....I brought shares in the above co, all info seemed postive, though the shares are going down, and lm not sure wether to hang on in there, or what? any advise would be great...l know l have a lot to learn, and investment in shares etc are a gamble, though it would be a great start to know if lve missed something on this company, then l can put that into a 'learned curve' (or down to experience and move on ), as l still have a lot to learn, but hopefully not, the too hard way On a postive note, l have enjoyed reading your threads and advise....so some good in my invest venture :T

I hold CZA but more importantly..... Why did you buy them?

nessjw

and why do you hold them?

cloud_dog

nessjw wrote: »

and why do you hold them?

Fine, I'm not the one needing answers. My question is pretty fundamental to everything. Good luck with your investments. :mad:

nessjw

+will add l feel CZA have scope, maybe in the long term, maybe l'm wrong, who care
s in a voice of many, lam a newbie, rather be a virgin than miss no nothing, just wanted to no if l shud sell..ie aSAP

nessjw

wHY BOTHER TO REPLY THEN, l ASKED FOR HELP...NOT A SUMARY ON WHY i SHUDNT

cloud_dog

nessjw wrote: »

wHY BOTHER TO REPLY THEN, l ASKED FOR HELP...NOT A SUMARY ON WHY i SHUDNT

I will give you a second chance but, please do not shout, it is rude and displays an inability to explain ones self adequately.

The question stands....

1. Why did you buy them?
2. What aspect of CZA made you feel this would be a share worth holding?
3. Was it fundamentals or TA which interested you?
4. Did you buy from a tip (another person / magazine)
5. Did you buy at the recent top (high 140p / 150p)?
6. What do you understand about their business?
7. What specifically are the main drivers for the SP?
8. Are you an investor or a trader?
9. Have you invested loads and cannot afford to see the price drop by 20%?

turbobob

Theres no right answer, it will depend on how it fits in with your own "system" and your circumstances. If you are an investor planning on building up a portfolio of shares, and these were a small part of it, then you'd probably have a different set of rules compared to if you are trading short term price swings.

I think its always better to decide what will trigger you to get out before you buy the shares, as you can be more objective then. Once you have them, if the price goes against you the temptation is to just hold on "until it comes back". This might pay off for a while, until one day your luck runs out and you lose more than you intended.

Briefly looking it dropped from about £1.30 to £1.00 last October, so recent price movements don't look to be unusual for the share, on the face of it. Sometimes they go up, sometimes they go down..

tradetime

I think its always better to decide what will trigger you to get out before you buy the shares, as you can be more objective then.

Excellent point, true objectivity is best achieved before you become involved with a share.

nessjw

I apprieciate the replys, l had brought in as long term, (as with the other shares), but being new to this, l have panicked, and should just forget about the shares for the next few years, as this long term was my plan, but have got 'hooked' on shares plus short term investment gains, just my gambling nature l guess! probably more peed off that lam losing on this, and not understanding why as feedback was good for this co....anyway thanku again, and please remember lm new to this, and just trying to make my money work for me, as no other f***** will, ie banks!!

cloud_dog

nessjw wrote: »

I apprieciate the replys, l had brought in as long term, (as with the other shares), but being new to this, l have panicked, and should just forget about the shares for the next few years, as this long term was my plan, but have got 'hooked' on shares plus short term investment gains, just my gambling nature l guess! probably more peed off that lam losing on this, and not understanding why as feedback was good for this co....anyway thanku again, and please remember lm new to this, and just trying to make my money work for me, as no other f***** will, ie banks!!

nessjw, as mentioned by turbobob your exit point is probably more important than your entry point.

Please do not 'just forget' about shares, that could be a costly mistake. Do you have a stop/loss for the price, if you don't consider one.

You know when people say DYOR, well you need to do it (as boring as it can be sometimes). Try reviewing the InvestEgate financial site for news/RNS releases for companies. As it happens CZA released their interim results recently and in there is a nice A$35.2 tax loss. At a time when most coal companies are experiencing strong growth this was probably too negative for the market to bear and has marked the SP down accordingly.

For me........ I think CZA has a great future. They have been awarded an unconditional New Order Mining Rights (NOMR) for Vele, and a conditional (minor) NOMR for the Holfontein. Mittel the huge steel producer hold 16% of hte shares (I think) and have a steel plant next door, with signed MOUs for offtake agreements. There is always rumours that Mittel may make a bid.

They recently completed the purchase of NuCoal which will add to the cash generative nature of CZA.

BHP have very recently agreed the first quarterly supply contract (something the coal producers have been after for ages), the coking coal price being set at $200 per ton (with talk this year of possibly $300 - although I think that is unlikely to reach this high). The increase in price, by about 55% I think, and the quarterly contracts are significant.

SP wise.... I bought in to CZA at 37p and have added to my position during the climb, with the last one being at 92p. The SP has fallen through its recent up-trend support and is hovering around a support area (130ish). Ignoring the possibility of a market correction I think the downside risk to the SP might be another 10p at worst. If it does drop below 125p I might be tempted to add some more.

As they used to say.... The futures bright the futres (well) black and grimmy.