Excuse me but by that logic OZL could stop spending money on growth, and pay out say $1.50 per share in dividends and suddenly be worth $50 ps ???
Sorry but you can’t value a company on current dividends, end of story. Lazy methodology won’t get you a realistic valuation.
Please also note that if you value OZL at $8 and BHP valued it around $25 then one of you is vastly wrong. Mike Henry hasn’t earnt a reputation for overpaying so guess who I would back? And I don’t believe BHP has even factored in much of the growth as they’d likely destroy it, and even if they didn’t are unlikely to pay for such less tangible aspects.
AC has earnt his reputation for reinvesting to add value, rather than just paying out dividends, as you require. I am happy to continue back that through the cycle, through recession and global turmoil. You are welcome to find something more to your taste than copper, and that pays good dividends, may I suggest banks.
OZL Price at posting:
$25.11 Sentiment: Hold Disclosure: Held
