nice! why the price weakness!

come on your f*cker!

OSH: JUST BUY IT. I like this stock here is why:

Our oil and gas analyst did some work yesterday on oil futures versus what’s in our valuation models. Share price discounts widened over past few months.

The average sector share price discount to our DCF valuation, based on the WTI oil futures curve and the spot A$/US$ exchange rate, has:
narrowed sharply towards the end of 2003 as both oil prices and share prices strengthened;
widened over 1Q04 even though oil prices continued to strengthen; and
trended sideways (average 15%) since May as oil prices increased to long-term historical highs and the A$/US$ exchange rate fell to around 0.70 Sep-03.
CSFB last night stated that oil will stay stronger for longer, remain higher than $30/brl over the next 3 years and as result increased their weighting in oil to 5% overweight. This means oil stocks are still being undervalued to where the oil price is being priced in the future by the oil futures contract. Upgrades must come through if the oil price continues to sustain itself above $40 per barrel. BUY OSH. Why?…

VERY SIMPLE….
1. Positive earnings momentum and is cum it’s first interim dividend of 2 cents.
2. The Santos takeover story is doing the rounds again.
3. It’s a free call on the PNG pipeline.
4. It’s bloody cheap - trading on an FY05 PE of 8X.
5. Leverage to oil price, which is not going too far below $40 - upside to $60.
6. Solid resistance at $1.36 but if it can break through she’s away. Little downside - $1.28 a free call for a takeover in my view!!