bell potters view on io price

An interesting extract from address by Colin Bell of Bell Potter Financial Group at yesterdays RIU Sydney Resources Round-up in regard to Australian resource companies being undervalued. Positive for SDL'sproject:
Additionally, Bell said now was a good time to capitalise on Australian resources because commodities were heavily undervalued by investors.

�In our view the biggest mistake the market is making is that analysts, corporations and investors are using long-term commodity assumptions of the past, not the future.

�As that mindset slowly changes you�ll see a major rerating of commodity equities and a huge [merger and acquisition] break out as it becomes cheaper to buy existing production than build it.

�The world is not going back to $500 gold prices, $70 iron ore prices, $1 copper prices or a 70 cent Australian dollar, however that is what most analysts use to value current resource stocks.�

�It is a historic yet inaccurate approach to resource sector valuation, yet therein lies the investment opportunity presented to us today.�


JR