In a doomsday scenario, nothing is really a massive buy for...

In a doomsday scenario, nothing is really a massive buy for retail holders, BUT if OZL was $4.50-$5.00, then SFR would be much lower, too, in which case, OZL would be lauded for holding off.

We are still in a bullish market in terms of the All Ords and overseas markets, however, the fundamentals of he Aussie economy haven't caught up- interest rates are still at their lowest and may drop further, so there's a real disconnect. A lot of M&A has been happening, particularly in the gold sector, but buying high is the downfall of companies. Look at Riversdale- almost written off after such an expensive takeover.

When the worst happens, cash-rich companies may get smashed, but they will be solvent. If lending dries up, companies like RXM will be well stuffed. OZL will be well placed. OZL had its own "darkest hour" and nearly went under the bus, but I bet management won't let that happen again. I hope they can increase their war chest, and not do something dumb. They have stood the test of time in "not doing something dumb" so far. OZL may even be a takeover target themselves- the fundamentals of the company are pretty good. JP Morgan, in the broker notes, says that a big takeaway from the last report is that Prominent Hill has a new conceptual growth target to 2030, 10 years longer than the broker was expecting.

http://www.fnarena.com/dsp_recommendations.cfm?searchsymbol=ozl

Darkest before the dawn?