relentless selling, page-77

OZL looking good from the outside looking in. If OZL does give the SFR shares in-specie, that's a 10% capital return right there (or dividend, such as SLR is giving to PRH holders- I don't hold those companies).

On OZL, the scrapping of the diesel fuel rebate will affect OZL (and AGO and FMG), but the AFR says OZL will be one of gthe greatest beneficiaries of the falling AUD, but this will be countered if there is a fall in commodity prices. However, due to the dollar fall, analysts have raised their EPS forecast by 21% from 57c to 69c (which is lower than we have currently- my platform says OZL EPS is 85.6c). My platform also says the NTA is $8.08, so the share is at a discount to assets.

I was having a look at the most recent buyback Appendix E. Already spent so far on the buyback: $170m. Shares remaining to be bought back: $30m worth. $200m all up! That is a hell of a lot of money. It could buy several companies, I'd say. However, it is probably not a bad use of funds. One just hopes that is really is accretive, and results in bigger slices of dividends, or whatever these things are meant to do. There are 309m shares left on issue (or thereabouts).

I reckon OZL is on the block. It has sold out of some non-core holdings, it is getting rid of SFR, perhaps (let's hope it doesn't sell the shares and just get more for the war chest- far better to give it back to OZL holders). With the removal of SRF, OZL will have 10$ less market cap- all the better to be eaten. OZL has done a whole range of things- some of which have seemed more radical than others, but at the moment, it just seems to be getting rid of "fat", including heaps of shares through the buyback. It is going to be a leaner company, focussed on knitting, with perhaps some purchases of companies in Latin America. On the block, I say!

Last time I thought OZL looked cheapish was at 87c. It's looking cheapish again- particularly if it does the SFR distribution.

And hello to Horse and the other long-termers!