IMO 60m is a really good price. I'm sure AJL would bite hands off for that amount. Think they should too, it's been a gas focused business for at least 5 years (looking at their board makeup, management, investors, debt holders). Drilling appears to be non-core doubt its getting much growth capex, if any.
Considering the cyclical nature of the industry, particularly after the coal market collapsed a few years ago.
6-7 times earnings is longer than the average cycle. I would think any serious suitor wants return on their capital much sooner and can't wait 6 years risk heading another cyclical trough.
AJL Price at posting:
41.0¢ Sentiment: Buy Disclosure: Not Held
