With my 60 years investing in Fund Management and Stock Broking...

With my 60 years investing in Fund Management and Stock Broking I regularly get questions from friends .The most recent has been on "WHC's increased volatility."

Now "High Volatility is normally found at Major turning points"..
Now in the case of WHC and the transformational BHP Met Coal deal it can be expected that the future leap in Revenue and Profits with the accompanying very very strong rise in cash flow and High ROE will attract Major Institutional Investment Demand ...This will induce high volatility "as larger blocks" of stock are demanded ...essentially from a very broad retail base of existing shareholders and so this rising demand will squeeze up the price quickly ..,as it seeks out supply from the many hands to the few!!! This pattern of demand will be an ebb and flow ..This high volatility will be accompanied by an "over all rising price" and is a welcome sign of this rising demand by large shareholders and the rising participation of Institutional demand absorbing tight supply and so restricting the available speed of the broad supply relative to the speed of the more concentrated rising demand.
I would expect this rising volatility to be accompanied by yet stronger and stronger demand as we move towards the integration of the Met coal mines into WHC....and of course a continuation of the rising stock price will accompany this transition.
All very good signs,
All the Best to All