"anything will do... to get this stock out of the crap"
Hahaha you read my mind. Sitting on the sidelines I think I might hop back in when it looks like something likely to happen,
Doing some calculations it looks like OZL might have been overvalued for some time given it's changed earnings position, Profits have dropped to roughly around $200 million and the stock is on a p/e ratio of 9.5% (approx) to make a substantial change to earnings the 650m would need to be invested at a return of at least 15%-20%. Then if Prominent Hill starts drying up in the next couple of years or if earnings are driven down by something else by $100m give or take and we assume a pe ratio of about 10 then management need to invest the money at 15-20% just to keep the share price where it is now. Market might be correct in its adjustments, lower earnings, lower dividends and really a less valuable company that a couple of years ago with exploration hopes fading by the day.
OZL Price at posting:
$6.75 Sentiment: None Disclosure: Held
