What we must ask ourselves is -— What is one’s fair value for...

What we must ask ourselves is -

— What is one’s fair value for WHC?
- Does the commodity price coming off slightly warrant a $600m gyration in WHC’s valuation within a couple of days?
- How much does the ASX coming off impact a sell down in WHC shares?
- How does WHC compare to peers relatively?

Workout the answers to these questions and one can workout whether they are buying, selling or taking no course of action today.

For me this is screaming a BUY today. I re-bought yesterday at $7.70 and will hit this hard on any opportunity sub-$7.50 SP by selling some of my other positions.
When one buys WHC at $7.40, a 10% return is merely $8.10 where it was trading couple days ago..

Fundamentally, this is a ripping opportunity in a ASX100 stock. From my perspective, people are dismissing the value accretion from the acquisitions at Blackwater and Daunia, and are ignoring the fact that not even a single share was issued to acquire these extremely long-life mines. In addition to this, BMA have provided part of the funding to WHC, it really is an astonishingly good deal from where I sit as a WHC holder. My preference is they sell down a stake in the assets and pay off debt completely. Over time it will re-rate hard being debt free and paying stable, sustainable distributions. It will be compelling for any institutional non-woke investor. Given the growth to the earnings from the acquisitions, I happily slap a conservative 8-10x PE on WHC.