I understand what you are saying tain, and I agree with the essence of it. However, I am not suggesting they use all of the cash to buy back their shares. I'm suggesting that they take (say) a few months anticiated free cash flow (around $500 million, for example) and buy back the ridiculously under-valued shares. This is a permanant increase to shareholder value, because it reduces the number of shares in the company and therefore, increases earnings per share, which is the basis on which share prices are fundemntally valued.
In additon, the company MUST make an aquisition for a number of excellent reasons, not least the fact that they have zero borrowings. With PH coming along soon, they are perfectly capable of buying a revenue producing, cash flow positive operation for $3 billon, with borrowings of $2 billon. This then solves the gearing problem and allows the company to grow as intended -none of which is at all impacted by the share buy-back.
OZL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
