I don't think it's anything to worry about. The buy-back will almost certainly be approved IMO, so in the next few months WPL is suddenly going to find itself with about 10% fewer shares on the register. Earnings, dividends and yield will all go up 10%, and WPL has confirmed they will continue paying out 80% of underlying earnings, which will be substantial, with Pluto chugging along and this Iraq stuff going on which has given a (small) boost to the oil price. WPL's LNG contracts are still oil-linked so I think earnings may surprise slightly to the upside anyway, even before the buy-back takes effect.
In addition, the overhang is now gone, and regardless of whether you think this makes WPL a takeover target, it certainly doesn't make them LESS of a target - it is either positive or has no effect.
So I think in the next few weeks to months, we'll see the SP trend up to make back that 5% and then up at least another 5%, possibly 10%. Trailing yield is now 6.6% as of yesterday's close (including one special div), which after the buy-back will be 7.2% fully franked - absolutely insane yield for a blue chip oiler.
Even without the special div it's 5.6% post buy-back. With 80% payout ratio going forward I don't really see WPL staying at these levels going forward.
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Last
$25.00 |
Change
-1.830(6.82%) |
Mkt cap ! $47.46B |
Open | High | Low | Value | Volume |
$25.25 | $25.43 | $24.97 | $203.7M | 8.113M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
25 | 61103 | $25.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$25.04 | 7867 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
24 | 60273 | 25.000 |
20 | 12039 | 24.990 |
35 | 22361 | 24.980 |
35 | 28296 | 24.970 |
19 | 11942 | 24.960 |
Price($) | Vol. | No. |
---|---|---|
25.040 | 7867 | 1 |
25.050 | 17005 | 2 |
25.060 | 4773 | 2 |
25.070 | 16829 | 2 |
25.080 | 1893 | 3 |
Last trade - 16.10pm 05/09/2024 (20 minute delay) ? |
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