Mr Galbraith, we are in heated agreement that OZL has a collection of superb assets, and those with a long term view would normally be quite happy to sit out and wait for the demand for resources to rise again. But these are not normal times, and as I see it the future of the company will be decided not by the quality of their assets but by what transpires in the bank boardrooms in the next seven days. And can you think of a worse seven days in the year to expect anything concrete to happen?
We can't forget that an asset is worth only what someone is prepared to pay for it. I like the confidence of those who believe the predators are so keen they will make a move before the administrators move in to ensure they don't lose their objective. I just don't share it. BHP are only interested in PH, Xstrata and Rio have their own problems and are in no position to be acquiring anything.
I'm not trying to say the company is worthless. Someone is going to pick up a few fantastic bargains, but it won't be the shareholders. It never is. That this potentially mighty company could fall for the lack of the lousy billion or less that it needs short term is unconscionable on the part of those holding up the debt, and that is generally accepted to be CBA. They will have OZL shareholders' blood on their hands, but do you think they'll care? Yeah right, as the yoof would say.
Naturally I hope I am completely wrong about all this. Nobody would be more pleased if that were to be the case. Good luck and good wishes for the festive season to all holders.
OZL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
