Forum Archive Index - January 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

After having bought out the 'very small' shareholders a while back, it 
has come to my attention that 'small shareholders' in OST have been 
mailed an offer over the Christmas period.    The offer will allow you to 
quit your shares at market price (without brokerage) or buy some more 
shares without brokerage ($500 or $1000 worth).

Currently the OST share price is floating between $1.80 and $1.90.    I 
did quite a bit of background research on OST in late 2002 and my 
conclusion was that somewhere in this price range was long term 'fair 
value' for this share.  Personally I quite like the company as a well run 
steel distribution business, which also happens to half own of Steel 
and Tube in New Zealand.     Steel and Tube is quite profitable which 
means that New Zealand shareholders of OST are going to be able to 
claim imputation credits from dividends declared by OST in the near 
future (due to the new tax arrangements to be phased in mid year) .   
However, my preference is to always buy companies at below fair 
value and OST is not in that category yet.

Nevertheless for small shareholders out there, I am absolutely neutral 
on what you should do.   This represents an opportunity to quit your 
shareholding at a fair price without excessive brokerage costs.    It also 
represents an opportunity to buy up to $1000 worth of shares at a fair 
price, again brokerage free.       Either way it is an opportunity to tidy 
up a small holding and I would suggest it is an opportunity for small 
shareholders, too good to miss.

SNOOPY

discl: hold OST




--
Message sent by Snoopy 
on Pegasus Mail version 4.02
----------------------------------
"Sometimes to see the wood from the trees, 
you have to cut down all the trees."




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