“applying your 'neat' valuation of $500 million to AZZ”
First of all the $500 million market cap was the aim of the management by the end of 2007, not mine.
Secondly, how much is that CO2 flooding going to cost ELK? Is ELK’s oil economically recoverable? At what price of oil does it stop becoming economically recoverable?
Thirdly, AZZ has more that one field. I think at last count it was about 7.
Fourthly, AZZ had almost $15million in cash as at 30 Jun 07, ELK had $3million.
Yes I am familiar with AZZ’s history with share buy backs. Even though I doubt they will buy back the full 15 million shares, I am sure that if they have the money coming in from JF-1 in addition to the $7 million a year coming from the other wells already producing, they will buy back more than a few.
AZZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
