Things are lining up nicely, the only risk I really see now is the environmental wildcard, but this is just an outside chance, but has potential to put a dampner on things.
Institional investors are on board - James has served the entree in the last cap raising, they need to buy the main course on market. As noted the share price is stabilising and should begin to trend up based on results.
Good investor presentation from Aurora (AUT) today and recommended reading for AZZ holders. AUT are to my knowledge the next biggest Aussie Eagleford player based on net acreage of ~10000 acres and a market cap of ~100M. AUT claim to be undervalued by 30-56% based on their other Aussie joint venture peers (see slide 21 of today's presentation).
When we look at AZZ, at a current market cap of 200M, and net acreage around 2/3's greater than AUT, it's easy to see that AZZ is probably the most undervalued of all ASX listed Eagleford players today.
Based on net acreage I calculate a current value for AZZ of around $1.05 relative to AUT's current trading price of 42c, which AUT say is already discounted by at least 30% over their peers. Of course assumptions all things being equal for acreage flows but these numbers give me plenty of confidence for AZZ.
Simply put, right now AZZ are the best value Eagleford player that is big enough to attract more than a passing interest by oil majors such as BP in the future.
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