Hi there
You’ve made a lot of predictions on the timeframe of your share price targets above. The facts are there for all to see - this business has transformed significantly and last Tuesday Whitehaven shareholders woke up with full ownership of Blackwater and Daunia. There was significant funding required yes, but you can read and hear how comfortable the board and management are on how manageable this acquisition will be, notwithstanding the fact we are in a lower coal price environment, and I think this is the key. Commodity prices are out of everyone’s control but we find ourselves today in a low price environment relative to recent history. The supply/demand dynamic is interesting; demand we know will be there for decades globally, the key is supply, and if supply is ever constrained coal prices will be driven up dramatically as we have seen before.
With respect to the debt funding for the BMA acquisition, my understanding is this will come in the next couple of months. In the meantime we as shareholders will have an in depth perspective on our new cashflows from the assets within upcoming quarterlies.
I am a contrarian by nature and prefer to buy stocks out of favour as this usually provides downside protection.
Main points and why I’m invested here right now:
- WHC generates extraordinary cashflows atm
- Low coal prices at present, so any upwards movement in coal prices means WHC’s free cashflows are driven up rapidly
- New cashflows generated from Blackw & Daun acquisitions are not priced into the company’s valuation / share price at present
- Company have made it clear they will continue to pay dividends from existing operations
- Extinguishment of the debt funding for the acquisition will be a catalyst to drive a re-rate of the share price which I think should take place within 10-12 weeks as these discussions are already significantly progressed.
- The ability to buy essential commodities like coal at such depressed valuations is astonishing. Coal oil and gas will never not be used and I like to invest contrary to ideological, woke individuals, socialist super funds, and institutions making important energy decisions on our behalf as citizens which will be to our detriment as a nation long-term
Good luck all
Hi thereYou’ve made a lot of predictions on the timeframe of...
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Last
$7.98 |
Change
0.140(1.79%) |
Mkt cap ! $6.676B | |||
| Open | High | Low | Value | Volume |
| $7.88 | $8.00 | $7.82 | $25.93M | 3.268M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2345 | $7.98 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.99 | 3629 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$7.98 |
Change
0.140 ( 1.59 %) |
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| Open | High | Low | Volume | ||
| $7.89 | $8.00 | $7.82 | 1002222 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| WHC (ASX) Chart |