Still Robust - Just Cheaper

Buying opportunity this coming week on WDS I’m thinking. With the bank failure in the US, financial stocks will be under pressure on the ASX Monday and WDS will possibly get taken down another notch too.

This is another cleansing the market had to have - first the stocks that reached ridiculous valuations despite making no profits have come back to earth and now maybe a few of the banks that lent to companies that made no profits (including a whole lot of flaky crypto outfits ffs) might actually go up in smoke. Not a bad thing.

The market is refocusing on real cashflows, profits and dividends and WDS leads the pack.

I didn’t think I’d get another opportunity to top up at a near bargain price on my WDS holding. I've been happy to just hold since last year however will be poised on the buy button early this coming week if this across the board sharemarket sell off takes WDS much lower.

At $34 WDS currently carries a P/E of 5.38. That’s a P/E number normally reserved for companies in trouble or companies that have had a spike in earnings that they couldn’t get anywhere near replicating. Now it’s true that WDS have had an impressive earnings spike …..but a PE of 5.38 is ridiculously low. (still generating rivers of cash with Brent in the low US$80's - even more so with the $A diving back to the mid 60's)

I think there’s real potential for this stock to run again soon now that Brent is down near its $80 bounce point, the big ex div flush is behind us and this latest market panic has WDS being thrown out with the bath water.