Interesting comments, thank you. I think you're after opinions from people who have been holding some time and have optimism going forward, which is not me.
However, for the conversation, I'm taking a simple approach to this. I'm viewing WNX as a growth company that will be hoping to be bid on the market on a price:sales basis. Current p:s is about 2 which is not excessive and could potentially be higher without being too aggressive. I'm punting the market might be willing to go to 3 times in a recovery bounce if there's a pipeline of additional sales evident.
If valuing off the back of financials, along the lines that you have done, then current valuation would indeed be stretched. So a good valuation is dependant upon the market being willing to go to growth metrics like price:sales
WNX Price at posting:
13.0¢ Sentiment: None Disclosure: Held
