why is ozl falling, page-5

Oz is falling because the market sentiment associated
with share consolidation is with mining penny dreadfuls that have been reduced to a fraction of a cent.
These penny dreadfuls tend to dramatically drop
post consolidation.

Oz's reason for consolidation is puerly cosmetic, however:
it wants to reduce its number of shares on issue from 3.24 billion to 324 million and take its eps from 17 cents to
$1.70. & take divident from 7 cents to 70 cents (all cosmetic)and as such make Oz vital stats look like others
in the industry.

Now:-

sp mkt cap #of Sh Debt cash EPS Div p/e
$1.62 $5.25B 3.24B "0" $1.33 17c 7c 9.74

After:
$16.20 $5.25B 324m "0" $1.33B $1.70 70c 9.74

OZL are not confident that the sp will maintain 10 times
current sp; hence the $200 mil share buyback program
to put a floor under the consolidated sp.


Now if we ask again why is the OZL sp going down when copper & gold & the ASX 200 are up, then one has to honestly answer that shareholders are afraid that the the sp post 14th June
may go down and this fear is confirmed by OZl's buyback strategy post June.

Does that make sense?

Cheers
Moorookamick