WDS too cheap?, page-413

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JCoure

34,397 Posts.

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14/09/22

19:05

Post #: 63701838
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Originally posted by noomxx: ↑

so let me get this straight, in your opinion CEO's should be appointed or fired based on what the short term charts are saying?

Lets get back to some basic facts:
a) WDS acquired top tire BHP oil assets before the commodities sector had its run. By definition, because of the uncertainty, the acquisition, now with the benefit of hindsight, was done on favourable terms. ie historical uncertainty meant the agreed pricing for the transfer of the assets was lower than what would occur in the current environment. Regardles of ones opinion of Meg, this will benefit WDS for many years to come

b) analyst consensus of future earnings have recently been trending as a stablelisation up:

For the traders out there, I have no comment, yes maybe WDS will suddenly trade under $30, maybe it will, maybe it wont.
In the short term the market is a voting machine, and as a voting machine, short term pricing can be influenced by many factors that have absolutely nothing to do with the underlying intrinsic value of the company.

By why on earth would an intelligent investor sell, pay capital gains tax, all in the hope that somehow maybe in the short term the price will trade under $30.
If this doesn't occur, then not only has the position been lost, but also capital gains tax needs to be paid. This means for the intelligent investor, the price that needs to be paid in the future to require the position is
a) dividends forgone
b) capital gains tax on position
c) market share price at time of re-entering.

That's a hell of a lot of risk for an investor to take, when the intrinsic value is undervalued.

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I never said that but I do not care for Meg O’Neill much regardless of the charts.

The charts seem to indicate what the market thinks of management and the Board and it is not too kind.

The assets are much better than the management integrity and the SP, Price Earnings and dividends suffer because of it IMHO.

WDS Price at posting: $32.34 Sentiment: Sell Disclosure: Not Held
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