Thungela12 Jan 2023 17:43
Hi all. I sold a wad of Rolls Royce shares recently thereby freeing up some capital. I bought into TGA on Tuesday partly based around Proactives 2023 competition tips……….. The tip may have been posted before but I will post it anyway. Good luck all holders
Vince Stanzione, financial trader, trainer and author of The Millionaire Dropout
Vince, who was fifth this past year and second the year before, has set his sights on a company whose name always make me think of famous Angelas – sometimes Rippon and other times Lansbury.
Vince cuts through to the important investment stuff, as he says he has personally held this South African thermal coal mining stock since late 2021, the year it was spun out of Anglo American “in an aim to appear greener”.
Vince goes on: “Many large funds rushed to sell the newly spun-off shares, and I was fortunate to take the other side. Since then, the stock has been on a tear, paying massive dividends and up over 750%. You may think it’s too late to buy Thungela and whilst another 750% maybe hard to achieve the company still remains on a very cheap valuation with a forward P/E of 2 and will continue to pay a minimum of 30% of its free cash flow in dividends. Even if the stock does nothing in the 12 months, you could be looking at a 25% return just from the dividend. I do also think the share price can still move higher.
“Thermal coal still remains a major source of global energy over 35% is electricity is generated from coal and that is not going to change for at least another two decades so the reports of coals death are greatly exaggerated. Of course there are risks, South Africa has problems with rail transportation with an ageing network, strikes and thefts of cables causing issues and delays and restricting exports and whilst concerning this does not stop them operating profitability.”
(Tip price: 1,454p)
Sign In
Follow the stocks
