Talisman is truly a worldwide energy company, with operations in North America, Columbia, Australia,southeast Asia, the Middle East, Africa, Norway, and the U.K. It has operations in some of the largest energy areas in the world.
The company had poor results in 2013, losing more than $1 billion on asset write downs. The company spent 2013 shedding itself of non-core assets — much like Penn West — raising more than $2 billion in the process. Talisman intends to sell another $2 billion in assets during 2014.
All this capital is going to be used to pay down debt and fund growth in both North America and Asia Pacific, where the company is going to focus its production. It plans to grow total output by 14-19% in these two key areas, at the same time as growing its gross margin per barrel of oil 6-11%. All this should translate to a 5% improvement in cash flow, to just over $2 per share.
At just over $11, Talisman is only trading at less than six times cash flow, with potential to improve it. This is a discount to its peers, with better growth potential. The company simply doesn’t get any respect because of its recent operational issues. Once the company works through the current issues and the market starts to warm up to the name again, look for nice returns.
Talisman also has an interesting wild card. Billionaire Carl Ichan owns a sizable piece of the company, and is said to be pushing for a sale. There are rumors that the company already turned down a $17 billion buyout offer, which is about a 50% premium from today’s share price. Patient investors could see another company swoop in and give them a nice takeout premium.
Sounds like only Ian Wallach is "excited over 10." I have not seen any other excitement. Right not TLM is trading at $10.01.
Hey guys, checking in… up $42k this month trading TLM, I get my stock alerts from flash market research) (google em). Saw an analyst recommend them on CNBC and have been using them ever since, currently long right now in my portfolio.