Thoughts on Whitehaven Coal (WHC)
Dear James, Shawn, and the MM team, Thank for all the excellent work you all are doing. I would like to hear your opinion on WHC, as its stock price has moved down from $7.50 on 14/2 (WHC announced Half Yearly result on 15/2) to $6.79 close on Tuesday 12/3. I think the main concern is that WHC may need to raise capital to fund the acquisition of the Daunia and Blackwater coal mines. The management, however, has flagged an opportunity to sell 20% in Blackwater to steel producers; and this could solve the Balance Sheet problem for WHC. I noticed that four insiders have purchased over 56K WHC shares costing $396K on 16/2, one day after Half Yearly announcement, around $7.10 per share. Does this mean short to medium term the stock price of WHC might go up around 10% to 15% to $8.10. Thanks again for taking this question.
