AJL - AJ Lucas Group

[pointr]

Do the sellers who have driven the price of this company down by around 25% in the past few weeks know something, or is it just general malaise and no positive news (make that no news at all) from this company for a while???

 

[pointr]

And so a profit outlook announcement that says apart from one off sale gains there isn't any profit and no dividend next time to boot. As usual a fair bit of potential positives mentioned for the future which all sound wonderful?? I'm starting to think that when you buy shares in this company they should throw in an ALP membership because you need to be a 'true believer'.

 

[pointr]

Yesterday AJL announced that a private equity investor had 'bought in' to Cuadrilla, this is Lucas's European holding company for developing non-conventional hydrocarbon plays in Europe. This venture will now be cashed up for exploration work for the next 3 years. The cash invest by the private equity firm is greater than Lucas's investment to date, so I suppose that points toward much increased value particularly if the geology can be sucessfully exploited. From memory the goal of Lucas is to exit it's energy ventures when the price and timing is right

 

[pointr]

Another hot thread. Yesterday AJL announced it had received the sale proceeds for some CSG acreage in QLD. From memory they received around 90 million dollars from an initial investment of 5 million. The money will be used to retire debt and put some banking covenants back in order + working capital. This announcement was made a few minutes before fridays close, hopefully this will put a floor under the sinking shareprice and from this time foward management might manage better

 

[mccollr]

Any thoughts on this stock. I see it dropped nearly 15c in the last two days. Was there news that I have not picked up on.

Rod

 

[pointr]

My thoughts on this stock. This engineering firm seems to be good at just that, seriously good engineering applied to drilling,pipelines,building,water and some energy development. The problem seems to be converting that expertise into profits and anything that the market recognises as worth. Today they have announced a JV with a Coiled Tube Drilling firm from Canada. The system has many stated advantages over conventional joined pipe drilling systems and is suited to coal seam gas drilling. It would be nice++ if AJL could actually do something that causes the market to price it higher. AJL is also involved in some non-conventional gas exploration in Europe through 'Calliden Energy' (name from memory ) The only profits they have booked of late have been from selling out energy projects they have developed so maybe at some point in the future there may be a dump of cash from Calliden and just maybe management has learned something from their mistakes.

 

[frankblack]

My thoughts on this stock. This engineering firm seems to be good at just that, seriously good engineering applied to drilling,pipelines,building,water and some energy development. The problem seems to be converting that expertise into profits and anything that the market recognises as worth. Today they have announced a JV with a Coiled Tube Drilling firm from Canada. The system has many stated advantages over conventional joined pipe drilling systems and is suited to coal seam gas drilling. It would be nice++ if AJL could actually do something that causes the market to price it higher. AJL is also involved in some non-conventional gas exploration in Europe through 'Calliden Energy' (name from memory ) The only profits they have booked of late have been from selling out energy projects they have developed so maybe at some point in the future there may be a dump of cash from Calliden and just maybe management has learned something from their mistakes.

Hi POINTR,
just wanted to shake hands,
Your dedication to the cause is outstanding.
For what its worth I believe things are about to change for the better.
I will be buying this stock at what I believe is the bottom.
If you also hold, I wish you the best.
Cheers.

 

[pointr]

Hi frankblack,lets hope that your prediction of things getting better are correct. There are so many things that should be right about this company, but I think the market has got so sick of management crying 'mea-culpa'. Lets hope it's good for all its shareholders, a return to paying dividends would be a nice place to begin.

 

[frankblack]

Hi frankblack,lets hope that your prediction of things getting better are correct. There are so many things that should be right about this company, but I think the market has got so sick of management crying 'mea-culpa'. Lets hope it's good for all its shareholders, a return to paying dividends would be a nice place to begin.

I am not up to date on the company, and by the sounds of it, it is difficult to know what is really going on.
With what I have heard about them in the past they are not all bad. They look a bit over sold, to me, and looking at the charts, due to bounce.
Best volume today for along time.
Nice financial report will make all the difference.

 

[skc]

Another drilling company hits the hard times.

AJL slashed EBITDA forecast for FY14 from $26-29m down to $12-15m.

What drives you nuts is that they only release the revised guidance after receiving a price query from the ASX when the share price tanked 50% in the last 3 months.

Since June 2013, the company has experienced a deterioration in business conditions and consequential pressure on its margins, but the extent to which those conditions have lead to a material guidance downgrade have not been known or able to be known to the company until the date of this letter.

WHAT A LOAD OF CRAP! Just by pure coincidence, they finish their guidance revision on the same day as an ASX price query?! Don't we have computers and real time accounting / ERP these days to know things like projected rig utilisation and costs in real time? Or may be there's a company policy not to revise guidance unless queried by the ASX.

 

[qldfrog]

What no post for 6 y?
Bade news and SP hit planned ahead as UK forbid fracking

 

[Country Lad]

What no post for 6 y?

Yes there are very smart people here at ASF. I had a bit to do with this company many years ago and I was involved in a conference where one of their execs was telling us how to suck eggs while it was so obvious he really had no idea what he was talking about. I decided never to even look at AJL. Looks like people here thought the same.

 

[frugal.rock]

No news here for a while.
Market clearly liked 2020 EOY results announced this morning.

3 year chart.

 

[barney]

No news here for a while.
Market clearly liked 2020 EOY results announced this morning.
3 year chart.

Have to feel a bit sorry for the Punters who got caught buying the top of the roller coaster at 12 cents though.

Company turned a $10 million 1st half loss into a $9 million 2nd half profit so maybe there is some hope for today's late buyers.

 

[frugal.rock]

Have to feel a bit sorry for the Punters who got caught buying the top of the roller coaster at 12 cents though.

More pommy government kneejerk reactions. The world has gone mad and the number 1 culprit is Biden.
Reactions to climate change are totally farsicle. Jackassrs.

(Orders to plug and abandon the only UK gas shale wells have been retracted)

No one seems to be interested in the mining equipment thing of AJL, or are they?.
?
It's just a steer clear one for me.
I should remove it from my watchlists... but I like lessons, either way ?

 

[barney]

Must be something in the air around MARCH with this one Pretty nothing announcement as you say Rock.

I know nothing about this fella, but they have a market cap of $68 million (higher after today of course)

They had a Net Loss of $3.3 million for their last Half year results but are expecting a good result for the upcoming Half

Cash/cash equivalents apparently +$7 million. Its a "Yeah Nah" for me but who knows

 

[divs4ever]

More pommy government kneejerk reactions. The world has gone mad and the number 1 culprit is Biden.
Reactions to climate change are totally farsicle. Jackassrs.

(Orders to plug and abandon the only UK gas shale wells have been retracted)

No one seems to be interested in the mining equipment thing of AJL, or are they?.
?
It's just a steer clear one for me.
I should remove it from my watchlists... but I like lessons, either way ?

View attachment 139796

i am interested and cautiously cherry-picking in this sector , but SO FAR not buying AJL ( but that could change in the future )

 

[Dona Ferentes]

More pommy government kneejerk reactions.....

(Orders to plug and abandon the only UK gas shale wells have been retracted)

I'd reckon it's a game of keeping their options open.
Its UK subsidiary, Cuadrilla Resources Holdings Limited, has been formally advised by the UK Regulator, the North Sea Transition Authority, that the NSTA is withdrawing the notice it had previously issued requiring Cuadrilla to plug and abandon the two shale gas exploration wells drilled at the PNR site. The two wells will instead be temporarily plugged and suspended until at least the end of June 2023.

The two wells are the only horizontal wells drilled and hydraulically fractured into UK shale rock. The wells were drilled into the Bowland Shale to vertical depths of approximately 2.25km and onwards horizontally for a further 0.75km each through the shale.

Fracturing and flow testing of each well confirmed the presence of a very high-quality natural gas resource, which flowed to surface from the underlying shale. However, seismicity induced during the fracturing process, above the UK regulatory limit of just 0.5 on the Richter scale, meant that neither well could be fully fractured, or flow-tested, to properly assess how much gas might be commercially produced.
at its UK subsidiary, Cuadrilla Resources Holdings Limited, has been formally advised by the UK Regulator, the North Sea Transition Authority, that the NSTA is withdrawing the notice it had previously issued requiring Cuadrilla to plug and abandon the two shale gas exploration wells drilled at the PNR site. The two wells will instead be temporarily plugged and suspended until at least the end of June 2023.

The two wells are the only horizontal wells drilled and hydraulically fractured into UK shale rock. The wells were drilled into the Bowland Shale to vertical depths of approximately 2.25km and onwards horizontally for a further 0.75km each through the shale.

Fracturing and flow testing of each well confirmed the presence of a very high-quality natural gas resource, which flowed to surface from the underlying shale. However, seismicity induced during the fracturing process, above the UK regulatory limit of just 0.5 on the Richter scale, meant that neither well could be fully fractured, or flow-tested, to properly assess how much gas might be commercially produced.

Sounds like Putin has shaken up the dreamers in the UK Energy department, to me.

((just as a footnote, the only measured fracking event in Australia was achieved by Geodynamics, which created a 2.3 on the open ended scale event, when trying for hot rock geothermal testing, in the Innamincka Basin)). Seismic is a log scale.

 

[frugal.rock]

Sounds like Putin has shaken up the dreamers in the UK Energy department, to me.

Russia and China have the world by the short and curlies. Just wait till India joins in...

Stupid politicians that couldn't organise a BBQ outside a butchers shop have just let it happen over the years.
Aus has no excuse, we could've been (a contender) nearly totally self sufficient.... I'm a communal hippie at heart ??

 

[barney]

I'm a communal hippie at heart ??

"I bring you love" ..... "Break it's legs" ...... lol Thanks for the laugh Rock