Seems that the first point of major resistance will be $8.43 and...

Seems that the first point of major resistance will be $8.43 and the next point of major resistance will be $9.44.
A few comments on the company at this time may be pertinent .just to remind us just where WHC stands on the road to success.


As Charlie Monger once said I can't see into the future so rather than chopping and changing shares I buy a Good Company with sound economics at a fair price ...and leave it to compound its growth and earnings and grow its price...Buffet eventually agreed with this approach and eventually followed it...Buffett did not dismiss the Ben Graham approach all together but essentially added Charlie's approach of holding on to let Earnings and Profits compound inside the company over time...ie not selling when the company hit book value or buying only shares on a very low PEx

Warren Buffet ran Berkshire Hathaway alone before he met Charlie.Warren followed Ben Graham 's approach where he bought a fair company at a low price ..like at say half book value and sold at say Book Value "not giving the company, if it was a good company with good economics time to compound its growth over time."Clearly there was two approaches...one to sell when the companies initial phase was complete and the other hold and let growth do its work.
Now what is a company with good economics .
1/ Firstly a company with a good return on Equity ......WHC has a return of over 50% on Equity ...exceptionally good...Importantly don't buy a company that burned up capital like an Airline or a chip maker just to stand still..but buy a company where consistent high investment wasn't required just to stand still but helped the company grow returns ..WHC

2/Then it had to be a company just throwing of cash ...WHC

3/Finally a company with little or No Debt ..in WHC's case they have debt for an acquisition that will maximise cash flow and increase return on equity and the debt will be repaid..from assets sales or cash flow. or a combination of both...so debt will be cleared quickly.

4/ Hold the investment ..(in Warrens case forever)...just let's say a long, long time...letting the compounding process work inside the company..bigger stronger more profitable and a rising share price.

Later Warren and Charlie added that the company had to have a protective structure like a powerful brand name such as Coke or J.P.Morgan..Boeing or Microsoft ,Apple, Disney Cadbury's Chocolate,Bank of America,Nescafé ....It had to have a name that impacts on the consumers mind....to have such a strong Brand or protective structure is great to have.... but this is very hard to achieve with all the other fundamental specifications.

The idea is not to have a Zoo of stocks but a large investment in few companies ...Charlie Monger at one point said ten clear independent companies were enough for a portfolio to have adequate diversification.

Perhaps WHC will become the go to coal company for Fund Managers in Australia ? ..WHC is now in a very positive phase of growth..and it does seem to have a lot of these sound investment qualities highlighted.

Of course honesty and good leadership by the management executive and board are paramount.
To date everything would suggest that the leadership are honest and trustworthy and able.to lead the company onto greater and greater success.
All the Best to All