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2.5¢ west peak iron limited

To make it simple doc, SRT had a market cap of 14m at 1.2c with...

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forrestfield

12,115 Posts.

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15/01/16

19:01

Post #: 16806314
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Originally posted by Dr.Seuss ↑

Just had a peek at the Appendix 3Bs of both SRT and WPI. So did a few beer mat calcs.

WPI has 38% of the number of shares on issue that SRT has. Fully diluted, this number drops to 36%.

So on this basis, taking into the curent share prices of both companies, WPI at 3.5c is priced like SRT at 1.2c.

On that basis, unless the SRT acquisition is a fizzer and not the 20c play the Walker has said, I can only see significant upside from here. A couple of months ago, SRT ran up to 2.2c on hopeful expectation. I think WPI is at the same stage as SRT back then with the added potential of upside from SRT success.

So minimum comparative fair value is around an 85% gain to take it to an SRT 2.2c equivalent.

This results in WPI at 6.5c now with an assumed acquisition on the horizon of a couple of month away.

Of course there are other factors like a smaller free float here and also what SRT does for Walker's rep.

Lets see what unfolds.

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To make it simple doc, SRT had a market cap of 14m at 1.2c with 9m EV...

Wpi at 3.5c has 11m market cap with 8.5m EV... so pretty close to SRT at 1.2c

Cheers

WPI Price at posting: 3.5¢ Sentiment: None Disclosure: Held
16 Upvote

0 Great analysis

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