With ISF hitting $0.90 the net asset backing per OCP share is as good as $5 !!!
Thus at $2.60-2.70 this stock is still cheap. I have seen some comments re the value of Signature and Baycorp not as transparent, as cannot be marked to market and I acknowledge this. However when cash and ISF is worth $3.50 per share then you are obtaining exposure to ISF at a discount and paying nothing for Signature Security and Baycorp exposure. This is a no brainer! Also note that carrying values are assessed every year and auditors are very focused on this currently thus will be interesting to see if there are any impairment charges when OCP releases its FY2009 result.
Also note that with Allco management agreement gone this also clears the way for a transaction to be done on ISF without any leakage of fees to Allco, all looking up from my perspective and perhaps time to further build my OCP stake.
I am now starting to believe that shareholders have a real prospect of realising north of $5 over next 2 years. Bring it on!
ISF Price at posting:
90.0¢ Sentiment: ST Buy Disclosure: Not Held
