WRR 0.00% 16.0¢ world reach limited

I think the odd holder will be tempted to sell - particularly...

  1. 237 Posts.
    I think the odd holder will be tempted to sell - particularly any who bought recently - however the breakout being 250% from peak to trough will shake out the sellers, offer some buying opportunities on the retraction and look to form some support around 1 cent or above before rising to test the 1.5 cent spike again.
    The large buyer a few days ago cleaned up a good amount of shares at the 1 to 1.1 cent level and would expect these holdings to be a medium to longer term holding buying value.
    Assuming Beam continues its previous growth EPS 1 year could be 0.0018 thus at 1 cent shows a forward P/E of 5.5 times. I suggest without the strain of the loss making division more capital can be employed into Beam and growth could be higher, however lets be conservative and say that fair value would be a P/E of 10-15. This puts WRR at 1.8 - 2.7 cents. If we think more additional growth can be achieved then the market could easily price in forward P/E's around the 20-25 mark. Further announcements of large orders now will be cumulative and EPS accretive, so I would expect re-rating on further announcements of size.
    On a break of 1.5 cents, next resistence at 2.4 cents.
    Once stocks get going they have a tendancy to overshoot so although I think the 3 cent range is acheivable in 3-6 months I would probably look for some higher levels and excessive spikes before selling down.

    A little birdie told me there could be some more good news coming, but then do you trust a man who speaks to birds?????
 
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