Originally Posted by
peterfindlay
Subsequent to my comments yesterday, ABN Amro have released updated research. NZO's website has been updated to incorporate this research, and refers to an upwardly revised valuation of $2.37 (previously $2.27). A couple of additional comments that may be of interest are:
"We believe NZO has been oversold recently.
Our downside case using US$38/bbl and PRC at market produces a valuation of NZ$1.73.
The Tui valuation, cash and tax loss components total NZ$1.45, higher than the current market price of NZ$1.42, effectively providing today's investors with NZO's Kupe and PRC investments for free.
We have valued NZO on current 2P reserves extraction from its investments, although we continue to believe NZO is well positioned to provide upside from successful exploration and development activity, and increases in reserves. We continue to believe NZO represents an excellent opportunity for investors seeking upside to value despite the recent softening of global oil prices."