WHC +3.82% : Rallied today as they announced their intention to seek approval to increase share buy-backs at the AGM on 26th of October. While this was widely expected, the size being sort is big, up to 25% of issued capital / ~240m shares which comes on the back of a 10% buy-back which is almost complete. Assuming they get approval and buy back the 25% on market (they are seeking approval for both on-market & off-market approaches), they would be a buyer of ~1m shares a day against a stock that trades around 14m shares a day. Fewer shares on issue improve per-share metrics and should ultimately support the stock over the next 12 months. While Coal prices remain the key, buying back shares at a rate of 25% pa is clearly going to help offset any weakness if it comes through in the underlying commodity.
MM is bullish WHC, although finding it hard to chase into new highs
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