I can see why people would be positive on WLD. Small upward...

I can see why people would be positive on WLD. Small upward changes in GM% can lead to huge amounts of profit (converting to free cash flow) given the compounding effects of operating and financial leverage.

I did own WLD earlier this year but sold out not long afterwards. Obvious issues are:

* the business is too highly leveraged for a cyclical business with little pricing power

* the capital structure is a mess (and would take a lot of time to research properly)

* Balzarini should be sacked once his ongoing tenure is disentangled from the ship finance facility.

Have posted in the past that the IPO really was a last chance, in my opinion, for Balzarini to refinance the debt in his business empire. The historical accounts for the prospectus contain qualified audit opinions re: going concern and it looks like compiling the consolidated financial accounts for the prospectus wouldn't have been fun (given Balzarini didn't put all of the relevant businesses into NewCo for the IPO).

The announcement was a positive that corporate governance is being addressed (probably at the instigation of some of the new major shareholders) but I think you'd need to see a cleaner balance sheet before looking into this further.