I didn't say that I thought OZL were buying into HGO. I simply have said that I think OZL has had a look at K or HGO in the past, and are probably still looking at it.
BUYBACK:
Elze has suggested the purpose of a buyback is solely to buyback shares as cheaply as possible, so as to create more value for existing shareholders. I strongly disagree. It is also in shareholders' interests for the share price to be supported.
So, let the share price drop as low as possible, to buy back shares extra cheaply... Is this what shareholders want? Really?
Unfortunately, HGO not backing up their word through actual buying sends a bad message to the market. Unless news is imminent and as such the company is prohibited from buying shares at this time...
SO RIPE, IT IS ABOUT TO FALL OFF THE VINE...
HGO is great big fat cashbox, asset rich, with a resigned MD, not tightly held, with larger companies in the sector buying into copper assets, certainty on tax, just sitting there not buying back their own shares, and with the natives getting restless and confused...
The only thing that is missing is a large target tattooed on its backside.
Could a company be any more vulnerable?
As I have said before, if HGO does get taken out below fair value, they will have only themselves to blame.
Yaq
HGO Price at posting:
25.5¢ Sentiment: None Disclosure: Held
