Acaca15
Excellent post. I have come to the conclusion over the last year that businesses that go on acquisition spree's are often trying to acquire what they don't have within their own business model namely the capacity for real organic growth. Growth through acquisition can look good initially especially through a period of bouyant business activity but over time the true picture emerges.
Your point about a significant part of the debt reduction and high OCF coming via a "one off" balance sheet movement in FY10 is very relevant imo.
Cam
Whilst they can certainly payout dividends from this level of lower Cash Earnings I am not convinced its enough to reduce debt.
NIBD as follows over the last 5 half years attests to this fact.
June10 39.2m
Dec10 39.7m
June11 31.2m
Dec11 43.4m
June12 40.8m
I still don't think WHG's balance sheet is best described as in "fine fettle", the largest line item is Intangibles that are probably worth 10c in the dollar of their current book value. Tangible equity is minimal
This business is a cigar butt, you can hold it and get a few more drags out of it via dividends but don't expect any growth. It will likely continue to trade around a yield type valuation with little up or downside as long as the dividend is paid.
- Forums
- ASX - By Stock
- mixed feelings
Acaca15Excellent post. I have come to the conclusion over the...
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WHG (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online