A little something I wrote about why I don’t own Colonial Coal seems to have made people angry.
This disaster in Zambia is just the latest example of why Chinese SOEs have such a bad reputation and one would never be approved as a buyer for Colonial. China’s reputation is so tarnished the DRC is turning to Saudi Arabia to diversify their partnerships.
Unlike Beijing, Riyadh does not have a reputation for extractive economic practices or cutting corners.
As I say all this, I cannot emphasize enough how little I care about Colonial Coal and how little work I’ve done on this stock. I threw the idea out after 30 minutes because the premise of the business plan is ridiculous. Sitting around and doing nothing for five years, hoping the limited pool of buyers improve their offers, is not a strategy.
