The issue of a substantial number of new shares, even if overwhelmingly to existing shareholders, is often accompanied by a decline in share price as it alters the supply/demand balance. However, the issue of 2 million shares by WHIreland (“WHI”) was immediately followed by a sharp rise in the share price to a 5-year high followed by a modest decline to just below the previous high. We do not know the reason for the moves, but continue to think that the shares are undervalued. Therefore, it seems an appropriate time to update our research and add a forecast to our “sum of parts” valuation.
01 Mar 2018
Light at the end of the tunnel
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Light at the end of the tunnel
WH Ireland Group plc (WHI:LON) | 4.2 0 0.0% | Mkt Cap: 10.0m
- Published:
01 Mar 2018 -
Author:
John Borgars -
Pages:
7
The issue of a substantial number of new shares, even if overwhelmingly to existing shareholders, is often accompanied by a decline in share price as it alters the supply/demand balance. However, the issue of 2 million shares by WHIreland (“WHI”) was immediately followed by a sharp rise in the share price to a 5-year high followed by a modest decline to just below the previous high. We do not know the reason for the moves, but continue to think that the shares are undervalued. Therefore, it seems an appropriate time to update our research and add a forecast to our “sum of parts” valuation.