People forget that to maintain cash they slashed workforce and cap ex and exploration etc etc therefore whilst the results are improving its not the result of cash generating activity but rather cash preservation.
Its when debt is at an appropriate level that they can start to turn the company around rather then be in survival mode and as you point out this will depend on commodity prices etc. Once this happens I will get back in. It might be $4 when that happens but i not concerned with what I miss out but rather what I gain.
Croasian will probaby make money in the long run and LT hold sometimes works but not always. My only issue with him is he never ever recognises issues with the company. Its Ok in my book to recognise issues but still hold if you have long term conviction which he has but to watch it go down hill and not react is not true investing - what it is is deep pockets. And to just say its great and there are no issues is lets just say incorrect. They might be temporary but they are real and it has been reflected in the share price.
If one truly knows a stock they would protect their capital when in a downturn- its not a matter of being contrarian of just waiting it out or a timing issue its about maximising capital at all times. Of course we all get caught out sometimes but when its a long slow burn its silly not to react.
STO Price at posting:
$3.29 Sentiment: None Disclosure: Not Held
(20min delay)
