sojourner, I believe there is an alternative. Since we are not married to any stock, including AXX, you sell AZZ and you switch to another energy stock with a stronger balance sheet, much lower debt and much lower EV to EBITDA ratio.
AZZ has a scary debt, pro forma the latest notes, and trades 16 times its EBITDA for 2014.
LNR has Net Debt to EBITDA as low as 1.6 times, and trades only 4 times its EBITDA for 2014. It drills in Texas too, it does not drill in a risky jurisdiction or offshore.
Good luck.
AZZ Price at posting:
53.5¢ Sentiment: None Disclosure: Not Held
