WSL has great prospects it just depends on whether or not you have an appetite to invest in the small cap arena.
They managed to turnover R1 billion this financial year for the first time.
No doubt in my mind ATM there is some tension in the boardroom.
The previous CFO & CEO go back to the early 90's where they both worked together.
Pure speculation on my part for what's next, anyway here goes.
While the circular mentions numerous times the rationale for acquiring all of Proudafrique Trading 147 (pty) what is the reason for it now....?
Yes it's stated that the 2 farms Silverbank & Verblyden will now be 100% owned by WSL....so what....it's not as if there's money to exploit those assets now.
All excess cash & all available debt will be thrown at Elandspruit.
I'm still digging around & gathering pieces together to figure out why go this route & just what amount of leverage did a certain Mr Johannes Cornelius van der Westhuizen exert over this corporate activity. That said they have issued 16.5mil shares in November last year & well WSL does not trade at those volumes in a hurry. Seems they wanted rid of this guy no matter what....but why issue shares....should of been paid cash.
Mr market hates it when small caps toss around paper, gives the wrong impression... they could of easily upped their debt to buy out unwanted shareholders.
Couple that with the departure of the CFO & well this where we are now folks uncertainty when there should of been drinks all round on a job well done for the year.
Looking ahead when the water use licence is granted, some time around August according to the CEO at the AGM, lets hope there's not too much dumping into good news. With the water use granted they reckon 3-5mths later they'll be selling product from Elandspruit.
I still think it'll get cheaper as there's a lot of script to move & no institutions will touch it in a BIG way so it's mom & pop season for the next few months me thinks.
P.S Thanks for starting the thread Shi.