Let me hear the celebration...WHC hosts year end
party with it's management team as the entertainment.
They are really not managers, they are
Love to watch my money shrink to new low levels...hope
evryone had some spending $$$$ set aside for the
holidays, 'cuz this POS will be a penny stock
Happy Holidays....I'll watch the obituaries in hopes of
seeing the report of an atomic bomb set off in Florida.
I hate this f@#$%ing company.
WHC is NOT the Titanic. Just year end tax loss
selling. Don't know how much further down WHC is going but
enjoy the holidays and be happy that you aren't
invested in the internet stocks! They will eventually have
their day of realization and it won't be pretty!
NEWS FLASH...NEWS FLASH...WHC is now conducting
business on the internet...inmates are housed in
cyberspace...inmates help businesses with their web sites and customer
service...WHC changes its name to Prisons.Com...stock rockets
to $1,032 a share on hopes that the steady profits
currently generated by the company will evaporate and be
replaced by make believe cyber profits. Sad thing is that
these new Linux and cyber stocks are "worth" more to
the eyes of the Wall Street big wigs than solid
companies like WHC. Gotta love the new World Order.
AGREED - do not worry, am taking gains out of
vitr,rrrr,cmcr&am reinvesting in avs, lin and whc. institutions
need to post profit and have walked away s.t. - they
will be back in mid jan 2k, still holding
good luck to all - i think many tech
techs are ahead and behind me.
Would it be considered child endangerment if I
bought 100 shares of this @ $10 for my 2 year old
daughter? I guess it would have been safer and more
profitable to put the $1,000 in a 4% money market....OOPS!
Another thing. I believe your accretion analysis
is incorrect because you fail to adjust for lost
interest income on cash balances. Math works out to number
going to $0.966 from $0.92 using your buyback
Just my opinions.
PZN was the leader and lost much of its value on
its own doing it took the rest of the sector down, a
new leader will emerge suspect will be WCH and will
once again raise the bar.
On the monthly chart
of WHC if you use a technique called Linnear
Regression you will find the mean average price of WCH to be
18.00 a share, said drawn line is practically going
My intuition tells me any time you buy below
18 you are in good shape over the long term, I
average 21.5 so I will again buy to reduce my basis, is
I said I wanted someone to set me straight on the
CPV deal if there was something I was missing and you
made some good points. But forget the CPV deal for a
I would like to discuss earnings per share and the
impact of a stock buyback and get your
First here are some points about the current
1- The consensus EPS estimate for year 2000 is
currently $1.20. That's down from $1.26 which was the
estimate about one month ago. But it is still up 20% over
2- The company recently announced at the last
conference call that the contruction program for next year
will be more significant then what the analysts were
expecting. The start up costs on next years construction
will be about 9 cents a share.
4- The reason
the the decline in EPS estimates for next year is
primarily due to these start up costs. There will also be
losses on the 2 New Mexico facilities, but that is
mostly offset by improvements at other facilities,
particularly in Florida.
5- The total float of the
company right now is under $100 million. Hard to believe
but true. The company has $23 million in cash in he
bank and no debt.
Now what should they
1- If all they the company does is use only $10
million of the cash on hand to buyback stock and not
change any of the construction plans, that alone would
add 6 cents per share to next years earnings. That
assumes they get the stock at today's price.
they cut the contruction plans in half (which would
still be strong growth in new facilities), and buy back
$20 million in stock (which they could easily do),
that would add 16 cents to next years earnings (12
cents for the buyback and 4 cents less in start up
costs). That would be a huge increase.
if they tried to buy that much stock in the open
market it would push up the price and they would not be
able to get it all anywhere near the current level
unless they could do a private transaction with a large
holder that wants out at the current price (there is a
mutual fund with 1 million shares for
4- If they can't make that happen, the next best
approach would be a Dutch Auction. A $20 million Dutch
Auction at $12 sounds like a winner. That would either
push the stock above that level and cost them nothing
or they get all or a portion at a great price. Even
at $12 per share, a $20 million purchase would
increase EPS 10 cents next year. And if they have to cut
back on the construction to make it happen, its a no
brainer. The impact on total shareholder value is too
great to pass it up.
indications are the company intends to go gangbusters on
expansion and doesn't appreciate the opportunity this low
stock price is presenting them.
Your right on. Investors should be very
frustrated and dissappointed with the management of this
Its not like the stock is down 10%. Its down 70% in
just the past 12 months.
The bottom line issue
for me is this:
Should a 70% drop in the stock
price in a very short period of time have any influence
on the companies short term business plan?
company with the financial strength of WHC should not
find itself in this position. They have options which
other companies may not. This company is no longer
valued in the market as a growth stock. Its now strictly
a deep value stock. The sad fact is that if this
company were to never get another project and just
operate what they currently own they would generate
enough free cash flow, combined with the cash on hand,
to buy back all of the outstanding float in 2 years.
"Buy Signal" confirmed today again on higher
volume for the second day in a row twice the normal
(average), does not seem on the surface to be a freight
train, but in time you will see the stock heading
Subj: Buy Signal Today
12/16/99 10:54 pm
Stochastics meet today and
tomorrow showld generate first "Buy Signal" in many moons.
Thanks for spending the time on this, it's
important stuff for all to understand. Lets do it
WHC book value/shareholder equity $115mm....$22 in
cash or $5.25/share. Return on equity 17.50% or
Now lets take $22mm and buy 2.2mm shares at $10.
Now lets look at the balance sheet etc. Book value is
now $4.25 as we spend $1. EPS jumps to $1 from $.92
as earnings as $20.25 in earnings is divided into
20.2mm shares verses 22.4mm shares. ROE jumps to 23.5%
as the numerator and the denominator increase
($1/$4.25) We've experienced a 8.5% accretion in earnings.
ROE has a big increase big treasury shares don't
count in book value.
Now lets' assume instead
they earn 17.50% on that $22mm in cash. 17.50% times
$22mm =$3.85mm or $.17/shares more earnings. earnings
is now $1.09, an accretion of 18.70%. Shareholder is
increased by $3.8mm to $5.42/share. ROE is now 20.1 percent
I'll still take option 2.