Quack - nice bit of analysis on the short position. I agree with your observation that EWC is trading at a significant discount to book value and replacement cost.
I would add that the short position will be on margin and that any short squeeze will likely be exacerbated by margin calls as the price rises. Not a nice position to be caught in.
In addition there is another broker report released over the last few days on the size of short position that validates your comments that EWC is one of the highest shorted stocks in the ASX, if not the highest.
The last time I posted was to explain the value of the Philippines projects from a fundamental perspective.
I chose not to comment on the Indonesian projects because I was not confident of timeframes. However over the last month or so I believe that the Indonesian project has also progressed to a point where it is likely to add to value over the near term.
Maybe with luck we all might see both projects i.e. Indonesia and Philippines power (hub already funded) funded in the near term and progressing through commissioning prior to the release of the annual report, with detailed data being able to be provided on the projects at the AGM.
If this occurs I believe the share price could be a multiple of where it stands now going into the year end.
Good luck to the long holders. Looks like time to back this company not slam it.
EWC Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
