WAF's "sovereign risk" meme is growing tiresome. How many times does it have to be factored in, over and over? If gold hit $1500, how many Ozzie miners would go to the wall? Most of them. How about that risk?
But OK. To try and address my own cognitive dissonance here: A similar thing happened with EVN when they off-took a few of Glencore's crown jewels after some analyst gave Glencore a valuation of $0 and they had to panic sell. It was an awesome coup for EVN but the SP tanked hard because they took on a boatload of debt to get it. That debt was paid off in record time, well ahead of schedule and then EVN re-rated hard northwards. Even though it was a no-brainer, institutions wouldn't touch EVN with a barge pole until money owed was gone.
So I see almost the exact same scenario here. Rivers of income, booming production. And the big boys go, "Nyet!" until they see that fiendish debt paid off. Dunno why. Maybe it's some metric calculation too clever for us retailers to understand but I swear, the day WAF klops that last repayment dollar on the lender's table, this stock will (insert rockets here).
WAF Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
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