Investors are divided on Exxon Resources (EXX) around the 205-206 price level, with some seeing value in the coal cycle recovery and dividends as the company navigates energy transition, while others question whether current pricing adequately reflects margin pressures and lack of sustainable revenue growth to justify holding through the next downturn.
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Algos hammering it down before lunch again, eish
@sceptic_pieter fair point on the margin squeeze, that's the real issue. Export pricing helped but domestic contract work is thinner now.
206.20, ja no. Holding for now.
Come on come on, push through 210!
206.20 NOW! LETS GET THIS DONE!
Coal's not dead, Eskom still needs it and we're seeing better pricing through the cycle. EXX at 205.34 with dividends flowing again is decent value if you can stomach the volatility. Compare this to where thermal coal peers were five years ago, margins are actually holding up. Long game here is getting through the transition without the market pricing in extinction.
ALGOS RAIDING THE STOPS AGAIN, CLASSIC SETUP!!
run baby run
Coal demand isn't getting better, and Eskom's still a mess so export is where the money is. At 205.34 we're pricing in some recovery but their margins got squeezed last year when thermal prices came off. The story sounds good but where is the sustainable revenue growth that justifies holding through the next downturn.
Wall at 200 won't budge. Someone's keeping it pinned.
@nico_the_analyst ja, balance sheet story is the one for me
Interesting numbers today, 203.28 and holding above 200. The coal cycle's been brutal but Exxaro's balance sheet is actually cleaner than it was two years ago, debt's come down materially. My reading of this: if Eskom stabilises even slightly and export demand holds, you've got a decent margin of safety at these levels. fwiw the dividend yield is starting to look real again.
Current R 201,21 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.