@Tradergimp
Was wondering if you had the inclination to have a look at WHC. I think it would be a good contrarian play or ST trade.
Some background.
Aussie coal producer, MC ~450M 1B shares on issue.
Just spent 900M building a thermal coal open pit - construction has finished, debt has peaked at ~900M.
Product is receiving a premium in the market ~7%
Current margins are ~$14/t
Made a profit last half (7M) fter some hefty one of payments ~45M to tax office.
Cash flow of 118M / half
Currently increasing production with aimed cost savings of $1-2/t (management like to under-promise and over deliver)
Brokers have TP of 0.30-$1.7
Major US shareholder (Napier) selling out approx 30M? shares left (under 5% late Jan).
The thing is, I like everything about WHC .... except the trend of the coal price. I mean you have a hated sector, a pressured seller, while the company is improving its operations and though it has a lot of debt, it appears easily serviceable even in this market with current cash flow.
So my question to you would be is there a daily / weekly signal in the trading that would identify the seller is finished?
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Last
$6.42 |
Change
0.250(4.05%) |
Mkt cap ! $5.344B | |||
| Open | High | Low | Value | Volume |
| $6.13 | $6.45 | $6.11 | $28.80M | 4.567M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 3702 | $6.41 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.42 | 6082 | 3 |
View Market Depth
| Last trade - 16.19pm 21/07/2025 (20 minute delay) ? |
| WHC (ASX) Chart |