Hi Guys and Snake specifically.
Interesting to see some discussion about what is a good price to buy ZFX back in at.
My main comment/contribution would be that we should not price ZFX or any stock in relation to the market. Rather the offer on the market should be judged relative to our valuation of the company.
Why? Because you need a reliable standard to judge the price and the market is never reliable and often wrong! (George Soros would say the market is always wrong - I am inclined to agree because the mass moves slowly and late).
If you allow yourself to be guided by Mr Market you are going to be guided by the mass mood. The mass mood this week says that ZFX at say $10-11 is tops yet its forward pe for just one year ahead is only 6-7 (check Andrewe's post for more accurate figures). It's earnings for this year may be as much as $800 million.
In this thinking I would disagree with Muzza (not criticising you Muzza). $10.50 may look cheap now but at $9.50, to me, $10.50 won't look dear, $9.50 would just look cheaper still.
A good buy is a good buy. So the key then is for each of us, for any stock, to form a rational picture of what we believe is a fair price for a stock and then judge Mr Market and the masses offers accordingly. You can hardly ever get the perfect price but you can maximise the offers put in front of you.
ZFX
zinifex limited
