WBA 0.00% $2.00 webster limited

CashewNot a farmer just a private investor with an ear to the...

  1. 126 Posts.
    lightbulb Created with Sketch. 4
    Cashew

    Not a farmer just a private investor with an ear to the ground.

    1) Carrying cost in 08/09 accounts was $45,919 million. Tassal holding was 28,139,372. Giving a gross carrying cost of $1.63 ($0.71 per Webster share). No disagreement there however Note 3 to the accounts includes a liability of $7.675 million for deferred tax on investment in associates. My understanding is that this represents the tax liability on the unrealised capital gain on the Tassal holding. At a 30% tax rate this implies an unrealised capital gain of approx $25.5 Million. Leaving a cost base of approx $0.72 ($0.31 per Webster share).

    2) I think the Sandhurst holding is on behalf of Errol Stewarts JMC group. But Im not sure, could be wrong - often am.

    3) I agree that the Tassal stake should be distributed to shareholders and that Webster is not likely to go below 20% unless they deal with the entire holding.

    4) I dont think the half yearly cash flow will be representative of full year cash flow because of seasonality. I think the discrepancy in market price to NTA is because opinion on value is very subjective and thats what makes investing such an intriguing game. To a lot of people WBA has no value because its price is trending down Breaking that trend will be the first obstacle for a higher WBA market price until then, those with an opposing view on value can accumulate at ever lower prices.

    Cheers
 
watchlist Created with Sketch. Add WBA (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.