re: xstrata rumours of t/o or Although I would be interesting to...

re: xstrata rumours of t/o or Although I would be interesting to see xtrata try to wrestle the OX it will be very difficult for them to keep up with the ever rising SP. Mick Davis is a famous tight a*rse and would be surprised to see him launch an attack on any company at anything close to fully priced. The OX is close to fully priced - unless there are some surprises out there.

The move I think is institutions altering their assumptions and buying up thier calculated fair value. Two key factors last week - consensus that copper will remain strong for 2006 and probably beyond and Zinc powering away. Finally the AUD is predicted to fall to .66c by Dec.

Thus if yoiu lift your metal price assumptions by 15% and add a foreign exchange gain of 10% - you have a 25% lift in earnings. Apply you p/es and you have yesterdays the movement from 2.00 -->?