Fully 60% of WR1's market cap can now be accounted for by its 19.6% holding in PWM. PWM is the darling of the TSX.V this year with an impressive stock rise of 213% year to date. WR1 on the other hand has seen its stock fall 26% in the same period. No matter what you think of WR1 mgmt, their equity raise etc, there seems to be a huge market disconnect just based on the company's holdings of PWM. Not to mention the fact that WR1 owns 100% of the off take of PWM. Given the incredible buying frenzy of the past month in PWM, is WR1 a buy just for its PWM holding and off take? It might be possible for PWM to buy back the off take but that would come at a hefty price of at least 8 million CDN (8.84 million AUD). Regardless WR1 will still own 41.5 million CDN (45.85 AUD) worth of PWM which is currently highly liquid and rising faster than a raging river in the Blue Mountains. PWM was up 21% yesterday ALONE and is set to open higher this morning here in Canada. WR1 is a big old buy IMHO.
WR1 Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
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