there have been talks about using the available to make acq of either a miner or explorer. the reasons are stock prices are stressed and hence a good opportunity to be engaged in such activity. however, there is a better way of using the cash: to have an on-market share buyback.
the buyback will have the following benefits:
1) buy shares at a significant discount. while mining stocks are generally under valued, ozl share price is under the most stress. buying ozl shares at current price or <$1.30 represent good value for the company.
2) the buy back, even if symbolic, will support the ozl share price help it to reach a level that represent fair value. A higher ozl share price will be beneficial if the company are to make an equity/cash acquisition.
Ozl is cash positive and has a large bundle of cash at hand. doing nothing with such a large bundle of cash, well it does not represent good management.
- Forums
- ASX - By Stock
- OZL
- good use of cash at hand
good use of cash at hand
-
- There are more pages in this discussion • 21 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)