The intrinsic value is normally calculated on a long term copper price and exchange rate. Intrinsic values are not normally influenced by day to day movements in commodity prices or exchange rates.
When a stock falls below it's intrinsic value (as happened during the GFC), it becomes a value accretive t/o option to the bidder. Often, the company being bid for has little "wriggle" room to move and the predator normally "picks up a bargain".
SFR is in the enviable position of not being cash constrained and having POSCO with a blocking stake. IF OZL launched a bid and got more than 50%, then I would think POSCO would capitulate (think RIO and Riversdale Mining - the blocking stakes did not stop the t/o).
HT1
OZL Price at posting:
$9.81 Sentiment: Hold Disclosure: Held
