I'm a little in awe of the detail and interest some of you have in NWH and appreciative at the same time. I would like to think the new acquisition is similar to Golding in that it may have been opportunistic but the synergies and add on's are of significance to NWH overall. In terms of valuation, I think it's struggling against some headwinds but not sure whether it is shorter's risking against some issues with projects or perhaps those in profit taking some. In any case (and referring Saragians recent chart -tks), i think we should be north of $2 and heading toward previous recent high's and with a promising outlook statement in a couple of weeks at the half year, onward above $2.50 sometime after that. I'm trying to look at history to gauge where they might be in 1-2 years and I would hope they reach north of $3 as in 2011/12 before the Samsung issue. The industry PE according to commsec is 14.5 but NWH do not seem to have been that high. I think the size and geography of a new NWH may change this and if their net profit can exceed $70 million without a substantial debt burden, we should see north of $3. Market forces will influence of course and hopefully more funds and larger investors will get on board and as usual some laggers will hop on for the ride and at that point some profits will come in handy. A little water to flow first of course. Some bullish sentiment around Iron ore (for FMG, RIO and BHP) is a good support, along with coal prices if they hold. Looking forward to the half year and another contract. GLTA
NWH Price at posting:
$1.98 Sentiment: Buy Disclosure: Held
(20min delay)
