I posted the below under the AJL thread...hold both in v.interesting times.....
AJL's prospects are only getting rosier as the coal-seam gas sector booms and the coal industry continues to expand. The pending NSW power-privatisation and the flagged spin-off of Lucas Energy make thing even more interesting. AJL continuing to attract strong buyer support on low volume... recovered ~25% over last few weeks to push back through the $4 barrier. A testament to the solid earnings profile & big upside potential of this company IMO the move into Sydney Gas was v.strategic and really spices up AJL's growth potential. The fit with the Gloucester project has huge upside and it cements AJL's position as a critical player, (as both resource-holder & as a key drilling/pipeline etc service provider)in the anticipated boom in NSW CSG sector. Initially AJL was happy to pay 38c for their large SGL stake, later reduced to 34c as the sub-prime hit the markets. Interestingly SGL shares have (unexpectedly)been under pressure since then, hitting 23.5c last week.It appears certain that the broker debacles are to blame, in particular Chimaera. The publicised "rescue" by ANZ has had a significant effect on SGL's market depth over the last few days. The dumping of shares appears to have ceased and confidence is returning to the buy-side, as evidenced by SGL's ~40% appreciation this week to return to around the levels that AJL initially purchased...ie, 34c. I hold both. IMO SGL's potential has been overlooked by investors due to the broker-related underperformance noted above; also debacles & bad management of prior years. AJL's expertise, management nous and good relationship with key stakeholders (eg, Babacock & AGL)will be on display as it seeks to unearth SGL's recognised potential.
And then of course there's also AJL's Gloucester Project nicely cooking away to keep investors interested....looking v.tasty IMO
SGL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
