Aussie Joe your missing the point. A share buy back in this market would be madness as it would seriously reduce the companies ability to grow.
Think of it like this from a financial perspective they could say buy back 1.5 billion worth of stock at say 2.50 investors get a 20% return on equity but the company is actually falsely inflating the market price of the security so in essence that 20% gain has come at the expense of the $1.5 billion of liquid assets.
Option 2 gear the $1.5 at a 50% ratio and make a strategic $3 billion investment in an undervalued performing asset. The acquisition if well done could easily lift the share price back to $2.50 or beyond so you have not only got your 20% as an investor and owner of the company but diversified your cash flow and grown the portfolio of assets.
Clearly a share buy back would be a cop out for a short term gain.
OZL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
