Recovers to 60 cents this year then moves higher over the good years ahead as global beef demand continues to grow.
I think the true tangible NAV (ships) is at least 40 cents and the company is capable of making 20% ROE on this NAV which is 8cps or $40m NPAT in total. Stock price of 60cps is 1.5x NAV and 7.5x NPAT (13% ROE).
The company made $46m in FY16 (pro forma) with a smaller fleet.
Broker forecast NPAT for FY18 at the time of IPO was $75m - the underlying industry dynamics haven't changed and the Aussie cycle is now heading the right way for WLD.
WLD Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
