- Low coal prices at present, so any upwards movement in coal prices means WHC’s free cashflows are driven up rapidly Are they low because over the last 2 years they were higher? How can WHC be generating extraordinary cashflow if coal prices are low? You cant have it both ways!
- New cashflows generated from Blackw & Daun acquisitions are not priced into the company’s valuation / share price at present Are you sure about that? Why wouldn't it be, its widely available information?
- 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. Don't hold your breath for this to happen, if coal prices are low like you say, it will be many moons before WHC is debt free again.
On your last point, the ideology that you invest against is a minority predisposition and less prevalent than you think. You are actually investing with the crowd here. I ignore the passive ideological sponges that go with the new flavour of the month without giving it more thought than what they are told to believe. Left leaning individuals get the limelight because they are the minority, as always, this is how our society runs, the minority is the squeaky wheel. Little to no media coverage is given to their cause, and the media coverage that they do get is clearly against them, media does not support them. Welcome to the flock!
WHC Price at posting:
$7.68 Sentiment: Sell Disclosure: Not Held
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