Australian (ASX) Stock Market Forum

WBA - Webster Limited

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Strikes me that cotton should be doing OK this year. Any thoughts on Chris Corrigan appointing himself as Executive Chairman?
 
WBA at yearly highs. Nice looking BO on both weekly and daily charts.
This stock's market depth does get thin at times but there's been larger volume the last four days.
[Note: Must check for next scheduled report.]
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Finally seeing some demand in WBA. Price at new yearly highs, but plenty to go before new all time highs.
Patience required for this one.
 
Assuming the $36m or so "profit" on sale of the water rights announced late June 2017 is just a result of the accounting entry where they wrote down goodwill the year after purchase / takeover of Tandou? If memory serves me there was some kind of strange accounting acrobatics (they needed to follow the AASB rules or something) in 2015 and then 2016 in relation to a large chunk of good will.
 
Ves said:
Assuming the $36m or so "profit" on sale of the water rights announced late June 2017 is just a result of the accounting entry where they wrote down goodwill the year after purchase / takeover of Tandou? If memory serves me there was some kind of strange accounting acrobatics (they needed to follow the AASB rules or something) in 2015 and then 2016 in relation to a large chunk of good will.
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Bengerang was negotiated with consideration being shares issued @ $1.15 which was indicative of the market price at the time of negotiating the deal. Tandou bid was again share consideration, WBA market price at the time of takeover announcement was $1.33.

Accounting requirement for business combinations required the consideration to be valued at market price on day of completion. Which meant shares were valued at $1.915 for accounting purposes and a hefty goodwill component resulted. First opportunity WBA got the wrote the majority of the market driven goodwill amounts off. Only leaving a goodwill component of 24M resulting from the increase in water rights on the water market between accusation date and finalising the purchase accounts – apart from this acknowledgement of increasing value of water rights over that small timeframe all other water rights are on the books at cost.

I see the profit on this sale is an indication that the water rights are considerably understated in the books currently.

Until this sale I saw WBA as likely needing to raise capital to fund their already stated operational expansions. They probably have the debt head room now to not raise but it’s a 50/50 depending on whether the major holders want to add funds or leverage the assets. If they do raise I expect it to be a pro-rated rights issue, none of this placement crap.
 
So_Cynical said:
Dec 21, 2008
Market Cap: 40,696,210
Issued Shares: 64,597,159
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9 Years later
Market Cap: 487,454,696
Issued Shares: 359,745,163

Webster has been very very busy issuing shares, raising money, buying stuff and selling stuff. Holding WBA for the last 9 years would of been significantly better then holding an Index ETF but not as good as holding many other stocks.

I reckon management has done a good job building the company and the asset base, growing the MC from 40m to 487m is a hell of an increase in just 9 years, if they can do that again WBA will be worth over 6 Billion in 2026.

Putting all the debt and one off financials to one side, WBA looks to be well positioned, Meat Sheep, Water, Walnuts and Land - a major agriculture play with significant growth potential that cant be disrupted, all they have to do is keep doing what they have been doing and annual returns of 10%+
would/could be expected.
~
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According to the chairman's address, this company has finally sorted through the mess created by the acquisitions and subsequent expansion. The walnut crop is a bumper, the walnut flowers are getting pollinated, cotton is planted and there's plenty of water for all their crops/orchards. Their sheep could do with some rain, but nothing is perfect for a farmer.

The share price tumbled after the chairman's address and is now at the bottom of it's current range. I'm no share valuer but the current price seems to provide an acceptable RR for me. I'd place a SL at 1.20, buy half here and plan to buy more when price gets to 1.45.

ps: I have to constantly remind myself that I'm a BO trader and not a share whisperer.

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Interesting development: Webster acquires Sandy Valley almond property.

Patience paying off on this one as investor sentiment turns bullish.

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So cynical are you familiar with the expression "curl the mo"?
 
peter2 said:
Interesting development: Webster acquires Sandy Valley almond property.

Patience paying off on this one as investor sentiment turns bullish.

So cynical are you familiar with the expression "curl the mo"?
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Never actually heard "curl the mo" but i have a vision of one of those handlebar mo's of many years ago and self satisfied tip curling, i think i paid $1.32 per share a few days before i posted above in early Nov, looking good now with the latest run up..

In for the long haul.
 
Profit takers look like they've stepped in.

Right at 2 bucks again and we might not see that price for a while?

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kid hustlr said:
Profit takers look like they've stepped in.
Right at 2 bucks again and we might not see that price for a while?
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Webster goes up and down a bit - as can be clearly seen in your chart, sharp runs up are often followed by sharp runs down...i really like the whole China/Asia growth & market maturity = demand for AU agricultural products theme.
 
Interesting, this means they can place beehives into their almond orchards at the best time to ensure maximal pollination.
 
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@peter2 your observation, which when coupled with the potential bullish A divergence, could lead to a strong move higher. Time will tell.
 
On February 21st, 2020, Webster Limited (WBA) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between WBA and its shareholders in connection with the acquisition of all the issued capital in WBA by Henslow Acquisitionco Pty Limited, a subsidiary of the Public Sector Pension Investment Board of Canada.
 
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