eral ....I can tell you on an NPV calculation WHC .is valued above $30.... on intrinsic value above $10 and on book value $6.30 ....Again I found it very hard to sell such value.
However when a huge wave comes out of the sea by deep volcanic action ...that "mighty wave takes the whole shoreline away"
To survive you have to be way up on the mountain...certainly you don't own a high priced shore home or even a sold built place a few hundred yards from the shore...everything gets destroyed.
I believe like this huge wave you can see signs the stock market correction is coming ...in the sea near Japan you see lots and lots of dead fish rising to the surface as the deep volcanic process gets under way .days before the big wave strikes...in the Stockmarket you can also see many signs ..huge overvaluation ...imports falling as consumers savings are dropping and their buying power falls..through loss of overtime ..no extra shifts ,no weekend working as consumers cut back and output is getting cut back and as stocking gets reduced ...as time goes by then we see rising unemployment..fall in housing purchases, rising debt on credit cards, falling car purchases....and technically on the one year charts the double tops are now present in the US indices .So most of these signs are now there and getting bigger!!!
Then to see a 50% fall in exports to the USA from Singapore for the last quarter and the USA is their biggest market in technology chips etc... To me this was the final nail in the coffin that the USA was heading for a major slowdown and so I sold.
Now I may be too early to buy the Snas bear fund on the Hundred leading tech stocks ..but as I said the signs are there and getting bigger. .
You cannot sell your beach house as that colossal wave is coming up the shore....equally if this correction is as swift as other major corrections have been ...and I believe it will....it will appear like a thief in the night...you just won't get a chance to protect yourself once it's started.
It may fall 20% on the first day and 30% plus in the next few days..When do you buy protection ..I'm sorry I just decided now was the time....If it looks like a duck,if it walks like a duck and if it Quacks like a duck...it has a very high probability of being a duck!!! All the Best to All
WHC Price at posting:
$5.76 Sentiment: None Disclosure: Not Held
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