WHC 3.60% $6.91 whitehaven coal limited

@Tradergimp Was wondering if you had the inclination to have a...

  1. 1,392 Posts.
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    @Tradergimp

    Was wondering if you had the inclination to have a look at WHC. I think it would be a good contrarian play or ST trade.

    Some background.

    Aussie coal producer, MC ~450M 1B shares on issue.
    Just spent 900M building a thermal coal open pit - construction has finished, debt has peaked at ~900M.
    Product is receiving a premium in the market ~7%
    Current margins are ~$14/t
    Made a profit last half (7M) fter some hefty one of payments ~45M to tax office.
    Cash flow of 118M / half
    Currently increasing production with aimed cost savings of $1-2/t (management like to under-promise and over deliver)
    Brokers have TP of 0.30-$1.7

    Major US shareholder (Napier) selling out approx 30M? shares left (under 5% late Jan).

    The thing is, I like everything about WHC .... except the trend of the coal price. I mean you have a hated sector, a pressured seller, while the company is improving its operations and though it has a lot of debt, it appears easily serviceable even in this market with current cash flow.

    So my question to you would be is there a daily / weekly signal in the trading that would identify the seller is finished?
    Last edited by Resurgam: 10/02/16
 
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Last
$6.91
Change
0.240(3.60%)
Mkt cap ! $5.027B
Open High Low Value Volume
$6.82 $6.99 $6.80 $39.70M 5.729M

Buyers (Bids)

No. Vol. Price($)
4 23887 $6.90
 

Sellers (Offers)

Price($) Vol. No.
$6.91 9762 1
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Last trade - 16.10pm 22/11/2024 (20 minute delay) ?
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