Every time I look out my apartment window I see a skyline of cranes on top of construction sites.
What a time to be a cashed up developer that is also offloading its property assets.
I can't believe the market values this company at ~$160M when WTP is sitting on ~$40M in property assets (which it's in the process of selling) and already has $105M in net cash (according to their 1H report)!
What's that make their EV... $15M?
EBITDA/EV basis that's a bargain!
And given that there has been no update on guidance other than to say that FY15 results are expected to be inline with FY14 (~$18M) it's entirely possible that this year's earning will more than cover WTP's Enterprise Value!
How is that possible?
On top of that in 1H they paid out over 60% of their earnings as a dividend and given their large cash balance it's hard to imagine this would not be the case going forward - so the management respects shareholders right to their capital capital back if they can't effectively redeploy it.
If anything I'm surprised WTP isn't paying out an even higher payout ratio!
I'm surprised the market has overlooked this and I think there is real potential for the market to re-rate this stock as a strong buy if the 2H results come in inline or better than the first half.
Seems just seems like so much potential to surprise on the upside.
Someone please tell me where I'm going wrong in my analysis of WTP?
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