I research and analyse hundreds of companies listed on the ASX and abroad... out of these perhaps 5 to 10 would stand out to me as bargain value plays and of these maybe 1 or 2 would offer huge short-to-medium term upside potential.
WHN stands out to me as the one big opportunity. The kind that only arises once in a blue moon.
It is extremely rare for a company to be in the situation that WHN are in right now, and to have exposure to a massive Shell drill program, the likes of which has not previously been seen on Australian soil. Mid-cap companies, let alone the small cap stocks, simply do not find themselves in this situation, no matter how good management are. The last time a situation similar to this arose was with BUY when it moved from 1.5c to over 18c on the back of a huge drill.
This is even better. 1/3rd of a 20% in a potential 13.5TCF gas in the exmouth basin offshore WA... Shell are committing millions of dollars and feel that they may have enough gas to have a stand-alone LNG facility!
To say that this is a company-maker for WHN is an understatement to say the least. If Palta is successful, WHN's market cap will approach $250-$300 million... which is many, many multiples of the $60mill valuation that we currently sit at.
If that's not enough, WHN consider this to be their 2nd best asset!! The elephant in the room so to speak is the huge oil target of the coast of the Seychelles which has been progressed to the point where they are re-commencing the farm-out talks. A few months ago, speculation of farm-out alone sent this company to almost 7c... now, with the increased work put into it, the improved attempt at farm-out, and the drilling of Palta... i'll eat my hat if WHN isn't sitting above 10c prior to December.
We know that broker's are following events very closely, and have commenced buying, however we haven't seen the avalanche yet. There is so much more to come.
Those with the hearts will come in and out and buy and sell and up-ramp and down-ramp... but i suggest you don't be easily influenced and sit on your hands and watch the fun that is about to commence tomorrow.
We have consolidated at 4c and the next push through 4.5c should see it approach 6c... and i won't be selling one share.
QFY Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
