Just had a peek at the Appendix 3Bs of both SRT and WPI. So did a few beer mat calcs.
WPI has 38% of the number of shares on issue that SRT has. Fully diluted, this number drops to 36%.
So on this basis, taking into the curent share prices of both companies, WPI at 3.5c is priced like SRT at 1.2c.
On that basis, unless the SRT acquisition is a fizzer and not the 20c play the Walker has said, I can only see significant upside from here. A couple of months ago, SRT ran up to 2.2c on hopeful expectation. I think WPI is at the same stage as SRT back then with the added potential of upside from SRT success.
So minimum comparative fair value is around an 85% gain to take it to an SRT 2.2c equivalent.
This results in WPI at 6.5c now with an assumed acquisition on the horizon of a couple of month away.
Of course there are other factors like a smaller free float here and also what SRT does for Walker's rep.
Lets see what unfolds.
WPI Price at posting:
3.5¢ Sentiment: Hold Disclosure: Held
