Latest Valuation from Simply Wall Street is $20.22 I believe they are thorough in their analysis.This does not take into consideration the restructuring costs or benefits on the Return on Equity.
Paul Flynn our CEO worked as a Partner in Ernst and Young and is well versed in restructuring ...I would look closely at the Return on Equity as a good measure of management effectiveness to see the improvement over the years ahead. The present ROE is 22.30 % A good ROE in the mining industry is between 5% and 9% and a good return on Equity for companies generally is between 15% and 20% so WHC ticks all the boxes..., when some of the Equity 20% to30% this will almost remove the debt overhang of 1.1 billion dollars or at least make it almost indifferent ..the vendor financing by BHP will be cleared in process and indeed WHC will be chased in the next few years by institutions ... ie once the institutions waken up to the reality that coal is not going away for many many years and that companies like WHC will be paying wonderful dividends. All the Best to All
WHC Price at posting:
$7.83 Sentiment: Buy Disclosure: Held
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