WMC (ASX) Ann: Annual Report to shareholders

Originally posted by Drugo ↑

Originally posted by Dabble010
I don't get why we are back to 4.2c

net assets grew yr on yr from $86.3m fy17 to $103.1m fy18
Net assets can be manipulated. However it baffles me that they have had a recent joint venture agreement which is accreditive to cash flow and net assets and yet the share price goes down. The recent funding agreement is not a bail out. It provides a cushion for this months and next months payment to Orion. (then they are fully paid). As Milan stated they always want at least $15 mill. cash at all times. This recent drawdown will cover that and take care of Orion. ie $15 mill in cash left over. If all things go bad they have this to cover the $14.5 mill due in March. After that, total debt is cleared.
Now include $2.8 mill jv injection and improved cashflows from Oct and we have cash in the bank without options being exercised.
We shall see what happens from there.
The current share price seems to paint a horrible quarterly report. The market has been right except for last years fin third quarter.
The market may be right. Who knows?

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I don't understand how the market can be right if the only peeps buying and selling is retail at the moment. Retail don't have the technical know how to value this. Smart money is holding back and watching the destruction of SP first and then will swoop in. These guys are patient and will be waiting for a high volume day to buy in with very little pressure on price. September QTR'ly is their timing in mho. Retail will freak if AISC comes in above $1,450 and a load of shares will be dumped to stronger hands at a discount. Wait and watch I guess.
Thankfully I don't really care what the numbers will be as for me more interested in longer term not September qtr.
I can see past this quarter as there is cash in the bank.
If management do come out with a corker there is no hope they will convert oppies with just a good December qtrly. A big holder can come in but they will also need retail momentum selling on the way up to take SP to 8 cents in the coming months. ATM retail keep selling to each other for a loss.
There are some traders who are making good money here on the back of others selling high and buying back low from the lemmings ago follow momentum.