eureka report, page-8

I think its a screaming buy.Opportunity to benefit from high iron ore prices. Compared to pure iron ore stocks it is massively undervalued.
2. The real story though is demand for steel. With the estimated costs of rebuilding in Queensland ranging from anywhere between 10 and 20 billion, OST will have a ripper second half and continue to benefit for medium term future.
3.OST benefits either way regarding the direction of iron ore prices. If prices fall its input costs fall (but demand for steel will remain high in Australia because of reconstruction costs in Queensland). If iron ore prices rise, steel prices will go up, but because OST provides its own Iron ore, its margins will improve and hence profits improve.

I have some OST in SMSF but also trade it. Have been range trading between 2.50s and 2.70s last couple of months, but reassessed over past week in light of Queensland situation and really regretted my most recent sale at 2.74 last week when it got to high 2.80s. Took the opportunity to get back in this morning at 2.72 and will hold for medium term trade (probably sell half around 3.00). Have alsoo added to super fund holding for longer term investment.