Less con­vinced

Finweek English Edition - - INVESTMENT - MAMARC ASH­TON,

While Keith does make a com­pelling val­u­a­tion ar­gu­ment, and we at Fin-week agree that the coal story has legs in South Africa due to our coal­fired elec­tric­ity plants, we do have a con­cern around liq­uid­ity i n the share. Wescoal had a size­able chunk of trade go-through on the 12th (2.6m shares) and 13th (423 000 shares) Au­gust, but in gen­eral trade floats be­tween 20 000 and 50 000 shares per day. Low liq­uid­ity means it is off the radar of a num­ber of in­sti­tu­tional in­vestors, which you need to ul­ti­mately drive the price. We think it is an in­ter­est­ing punt with good un­der­ly­ing fun­da­men­tals but we are bat­tling to see where the cat­a­lyst for a re-rat­ing will come from. It’s good for a punt, but we would scale back ex­pec­ta­tions some­what.

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