A man in a suit

AJL currently has one problem, and one problem only.

We did not take the loans from a loan shark.

A loan shark has a level of mercy, and wants to go on with his business. This is getting loans out against very high interest with a low downside.

We however borrowed money from a man in a suit.

The type that calls themselves Private Equity. The ones with no morals. With no shame.
Yes, he is effectively the same guy as the loan shark. In fact, if you follow his family tree, he is the off spring of generations of loan sharks and the like. To be more precise, if you follow the family tree back far enough, you will find pressing reasons why they ended up in Australia.

But, this man in a suit is the one that studied. The one that made his way up in society. After generations of struggle in the gutters and backroom bars.

So, he stays loyal to his genetic pool, and is still very much the loan shark. But, there is a difference. Not only does he charge more than a loan shark because after all, he is wearing a Savile Row suit. He is also the one that studied, so he sees more potential then his ancestors used to see.
Once the last drop of risk is gone, he holds you, his victim, over a barrel. The loan shark would have simply cashed in his loan plus extremely high interest. The man in the suit however, he still wants your house, your car and probably your wife if she is pretty enough (you might get her back later). Lets be less cryptic, I mean the business equivalent of it; in return for his loans and interest, he wants shares. As many as possible, so the price per share has to be as low as possible.

In the real world that means; many strange trades in the AJL share. A stock price that never really goes up, despite decent, good or sometimes very good news. The man in the suit will keep it low. As low as he can get away with.
He will keep much of the good news to himself. Or postpone its release. Or moderate it. He is never in a hurry, as the gravy is dripping on his plate every day.
And, behold, if the meat never seems to dry out completely, even fat building up, and he can not get away with hiding himself with delaying timelines and media exposure, only then the final bite is announced. A juicy one. And fat will drip of his chin for years to come.

So, please, don't pay interest. Please, don't hurry in getting new financing. The more shares the better.

The risk on corporate level with AJL is going down. (although the cowboys are drilling an hdd in Tanguh, a risky venture; but potentially profitable, so no news for shareholders to have).
But, with progress on all levels, getting rid of construction activities in Oz, a healthy drilling division and progress in the UK with the shale investments, a last round is looming. Not a death bite, just a very hungry bite.
Thus; price of the share will remain low. A last capital rise is on its way within 8 to 12 months. Everyone will be diluted once more.
But; if you hang in there, have balls of steel, and money to invest; it is a very outspoken opportunity to increase your shareholding.

What did you learn?
Never borrow money from a man in a suit!

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