I watched the Business News on Fox Channel last night and saw the CEO interviewed about its results. Its profits are five times what they were last year and it has declared a 17c dividend (6c last time). What I can't understand is that I watched this stock yesterday afternoon and saw it fall quickly (probably after the results had been delivered). If it has such meteoric profits, why did everyone suddenly dump the shares late yesterday? I am inclined to buy some this morning on open but will decide when I see the opening price. :)
sam21poddy
13th-August-2004, 03:16 AM
I took a punt and bought 5,000 @ 4.98. I only ever buy 1,000 at a time so this is a real gamble. They occasionally fall as low as 4.66 so I hope this is not one of those times. :)
GreatPig
13th-August-2004, 04:19 AM
Here's their chart.
Current price according to yahoo is $4.93.
Cheers,
GP
sam21poddy
13th-August-2004, 04:55 AM
Thanks for the chart. Yes it does seem to be following the fall as shown in the chart. I like to trade WMR because it has a fairly predictable trading range. I just thought that the good profit announcement would throw predictability out the window but it does still to be following its normal trading patterns. If I end up having to hold it for a while I will console myself with the dividend. :)
crocdee
17th-August-2004, 03:26 PM
could be intersting in the next day or two fcn falcon minerals in a trading halt. wmr have an interest in the collorubbie exploration mine out of kalgoorlie. good nickle sulphide results to date with the big one still to come. this could be it who knows.
suggest all to read the last few reports of fcn imo theres a quid to be made here.
regards croc
JetDollars
15th-November-2004, 12:59 AM
Dear All,
Do you guys believe RIO will try to takeover WMR? if that's the case then WMR will heading north again.
RIO been cash up for a while now....
Where will WMR go from here?
Your comments please.
sam21poddy
9th-December-2004, 11:57 AM
Here is a part of the public announcement today:
"WMC Resources Ltd (“WMC”) intends to return up to $1 billion of cash to
shareholders for 2004 through its ordinary dividend program and additional
capital management initiatives announced today.
The announcement coincides with the upgrade of 2004 earnings outlook to
around $1.3 billion, materially above current analyst consensus estimates of
around $1.1 billion."
They have already paid a 17c dividend for the first half and say that the expected second half dividend will be 20c. In addition, they are returning 30c capital (which will be debt funded). By my calculations, the 50c to be paid during the next six months equates to a 7% return at the current price of $7.04. I haven't heard any analyst's comments yet on the announcement. But I can't understand why the price hasn't risen on the news. Substantial volumes are going through but the price isn't going anywhere. I have bought 6,000 this morning based solely that I think 7% return is a high yield. Do you think that the price hasn't done anything because analysts haven't digested the report yet or is there something negative happening that I don't know about?
GreatPig
9th-December-2004, 12:13 PM
I think they're trying to shake off the takeover offer by reducing the value of the company below the offer price. I gather they're not happy with the offer.
Generally I think share prices wouldn't increase for high dividend yields because after the dividends the company will be worth that much less, and the share price theoretically would drop by the amount of the dividends. So in that sense there's nothing to be gained from a dividend. It's primarily just realising some of the capital growth as income.
