WSI (ASX) Ann: FY22 Growth Plan Investor Presentation

Originally posted by Waldo777 ↑

I feel like a broken record but please understand the quarterly does NOT show profit!! It’s just a meaningless cash movement. If you compare with the balance sheet at 30 June it shows they are receiving substantial contract receipts IN ADVANCE. When money is received before works are complete a contract liability is created. If you don’t understand this then perhaps do some research or consult an accountant.
Please look at the balance sheet at 30 June. There’s substantial liabilities which function as DEBT. The quarterly figures for this stock are misleading at best, the audited annual report (where they finally admitted to getting more than $2.5 million JobKeeper) is all that can be relied on IMO. WSI is unusual in the sector as it receives significant contract receipts in advance. Unearned revenue, contract liabilities, payables, etc. all are liability (debit cash at bank, credit liability and then when the work is done debit liability and credit revenue for those who get accounting) whatever helps you understand these are essentially identical to a short term DEBT facility. i.e. the cash at bank isn’t owned by WSI but rather owed to another party! Only when WSI completes all the works is the cash figure credible so the quarterly CASH figures don’t mean anything.

You’ll all be glad to know this is hopefully going to be my last post here for a while! I’m genuinely just trying to help inform and educate. Most of you are blindly investing without any proper analysis. Instead of being thanked for contributing new insights I get the same rubbish responses over and over. My sentiment isn’t ‘sell’ and I’m not downramping. If someone like myself was posting when I first invested here I would have saved a lot of money. This stock has positives, sure, they are easy to see, but there are also risks and drawbacks that aren’t so obvious. When I first invested all I saw was the headline order book, rapid contract win growth etc. and implied profitability. After a few years they are still taking all the risk of delivering large contracts and yet haven’t generated profits to enhance shareholder returns. This year is make or break for WSI and I am watching closely as there may be a time when I become quite sure this is a very good 6-18 month investment. I see a few risks first, however, a potential capital raising to fund the rapid order book growth being the main one. If you look back over the past three years it’s also very evident that the share price always declines here without news and, on the balance of probabilities, there won’t be anything much until the next quarterly in January (which is likely to to negative if you analyse the recent financial reports in totality). It’s a real shame that balanced sensible discussions don’t take place here.

TLDR — I’m not saying don’t invest here, the fundamentals are strong and I don’t have a ‘sell’ sentiment. Just do some research, see the risks and don’t assume it’s a sure thing based on ignorance of the real cash balance and (lack of) historical profitability. Good luck all.

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All companies have lease and contract liabilities, whoppie do

No.	Vol.	Price($)
1	119148	13.0¢

No.

Vol.

Price($)

119148

13.0¢

Price($)	Vol.	No.
13.5¢	4149	1

Price($)

Vol.

No.

13.5¢

4149

No.	Vol.	Price($)
1	119148	0.130
2	210000	0.125
2	94000	0.120
1	8695	0.115
1	30000	0.110

No.

Vol.

Price($)

119148

0.130

210000

0.125

94000

0.120

8695

0.115

30000

0.110

Price($)	Vol.	No.
0.135	4149	1
0.140	231878	4
0.145	134500	4
0.150	50000	1
0.155	45570	1

Price($)

Vol.

No.

0.135

4149

0.140

231878

0.145

134500

0.150

50000

0.155

45570

(20min delay)
Last 13.5¢		Change 0.005(3.85%)		Mkt cap ! $15.89M

Open	High	Low	Value	Volume
13.0¢	13.5¢	13.0¢	$19.53K	146.2K

All companies have lease and contract liabilities, whoppie do

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