azz webb site, page-24

Moneytree,

The company is not 'worthless' anymore, but it could be depending on what it does with that cash.

I don't know where the line is on talking about other companies, but as it appears others have done so in this thread I'll do it too.

AUT - great company, good assets, but way over valued. Priced for perfection for years to come. Lots of pumpers there.

SSN - priced for failure and worth more dead than alive. if I had mega-bucks, I'd help it along.

AZZ - Cash may be coming in.............maybe not depending on what they do with it and the 1031 exchange. Could be a dangerous move.......based on prior history and IMO I think that is what has the market spooked.

Safe way to play it would be to swap for a small property for say 1/5 of the price and then take the cash as the boot. Offset part of the gain by the stash already spent on the land ($30 million plus). Hold the cash for better buys.

There are lots of neat properties on the market now with good to great potential.......does AZZ have what it takes to pick out the right one(s)?

AZZ also needs to get information to the market about what it has left and the prospects of the Petrohawk land which as I correctly stated (and got bashed for) was not part of the sale.

For an oil company to be a success they have to be able to return the market cap to its shareholders in some form.

One way is capital gains by selling the company. Another is by dividends. That is why most Oz O & G companies will fail time after time or be bought out once the reserves/assets and/or future profit stream exceed the possible T/O market cap (SEE former ADI) and people fail to see the true value in the shares (SSN)

IMO 90% of the ASX listed companies in the sector are doomed to fail or will be nothing more than a cash cow for the insiders, directors, the sofisticayed investors, and the brokers that get rich off the cap raisings. Investors would be better off having them declared DOA.

For example, does anyone believe that XYZ company will be able to get A$500 million back to its shareholders? Well, maybe if the price of oil goes to $200 a barrel and NG soars to $15 per mcf.

Can AZZ now get its market cap back to its shareholders? Probably - we know that 10% of the issued shares are probably going to be bought back at a price less than the cash holding per share so that is a smart move to increase the value of the remaining shares.

IMO AZZ lucked out and got a price that was way above my expectations.........IMO they got a good deal and CHK got taken.

Now I hope that AZZ shareholders are not next in line........again.