Target $18.72, page-9777

Borano is - or at least says he is - a trader. When you hear someone say they value a resource company using net asset backing (he isn’t the only one) then take whatever else they may say with a grain of salt.

Building a simple coal DCF isn’t too difficult, I play with one that I initially downloaded from one of the broking houses.

It is important to remember having a dcf model doesn’t given you any special insight, anything you think you know the market also (generally) does. It is a useful tool to test assumptions though.

As on example, one of the bigger brokers uses a punitive discount rate in their valuation model. Running their assumptions at a standard discount rate shows this broker actually has a bottom up valuation for WHC north of $15.