Smartinvest
.... think about this logically. Your basically saying that all these analysts are wrong and you are right.
I have been saying the exact same thing for the last 6 months about western as these analysts.
Now I'm not saying I am smarter than you, far from it actually, but I am saying that perhaps I am looking at the situation less emotionally.
Are you sure that you haven't "fallen in love" with the idea of Wpx.
It has happened to me before on certain companies, and I was blind to any faults they had.
I can't see how you can say all 3 of the analysts I have quoted below are wrong.
He adds the investment covers roughly 1% of the total capital requirement for Milestone, noting “a cavernous financing gap still needs to be addressed.” Hanson has reiterated a market perform rating and 75¢ target price.
BMO Nesbitt Burns analyst Joel Jackson told clients that despite the new found cash, he believes the probability of Western building the project remains low, suggesting the investment was largely “politically motivated.”
“It’s a nice check box for certain Chinese bodies to indicate there is an investment in a Canadian potash project even if that investment is essentially meaningless when it comes to actually building the mine,” he explains in an email.
Jackson assumes the project would cost over $4 billion to construct and would come on-stream in 2018, two years later than expected.
“In the end, WPX is $32 million closer to a likely $4-billion plus price tag, which is not much closer,” he writes.
Echoing financial concerns for Western, Salman Partners analyst Andrea Rubakovic says she continues to prefer Karnalyte out of the Saskatchewan potash juniors because of Wynyard’s “relatively low” start-up cost of $600 million.
“We continue to believe that in the current financing environment only the best quality potash assets, of those with a unique appeal to strategic investors, have the potential of being financed through to production,” she writes. Rubakovic has a 40¢ target and recommends a sell on Western.