WDS too cheap?, page-380

WDS share price is driven by a few factors.
1. Growth prospects
2. POO
3. Balance sheet strength (this is related to 1 and the intersection of these two allows people to make some guesstimates on equity raising)
4. Management

With the merger, there are plenty of growth prospects, but the inability to sell down is raising a question mark over the balance sheet. The POO is known, but forecasting it is a nightmare, and management is new. So, in short, the analysts who provide the reports which then drive the purchasing of shares by institutions are not drawing any recommendations as there are too many bouncing balls in the air. Until the dust settles and the company strategy is known. (Remember that there is a strategic review off the assets being done), then the price will probably remain subdued.

HT1