Take a neat 25% off the top right away for royalties andother costs, another 10% for misc, and another 10% for the real POO they'll probably get - but be generous nd use $50 per b.
No way they are going to get the high case scenario either - again be generous and use the middle case 10,000 b's.
Then you haveto understand that the cash on hand basically offsets the cap notes.
AZZ is going to have raise lots of cash for new wells - maybe they can pull the woolover the eyes of new buyers again at a premium, but I doubt it.
IMO this company is pure hype with a huge market cap and very little cash flow to back it up.
As I look around the sector, there are very few companies worthwhile putting funds in and AZZ isn't one of them.
Geez, they have almost 300 million shares outstanding now as well......
AZZ Price at posting:
49.5¢ Sentiment: Sell Disclosure: Not Held
