price should be bases on future expectations. however up until lately we have been repeatedly disappointed. thankfully that seems to have improved in past couple of quarters though not long enough to be a clear trend. as for the current oil price, at this point, it seems obvious oil prices are not based on anything tangible. oil prices seem to be subject to pure manipulation. thus the price of tat and to a lesser extent any energy company is largely influenced by fear .
It looks like we will hear some positive results soon about the recently TDed wells??? I really wonder what's going on in Turkey.
share your hope that management is stepping in...how NMMIII and leadership could pass up on fire-sale prices would be beyond me.
i notice that another E&P company that i follow, TAG Oil, just announced a buyback of nearly 10% of its shares. much smaller than TAT. they have a strong balance sheet and are growing production in the highly prospective taranaki basin in NZ. $0 debt. heck, they are sitting on cash that is nearly half their share price and selling for
Sentiment: Strong Buy
Last few days there seems to be some support for the stock in the face of the falling oil prices.
I hope it is of management doing. I hope that they finally seen the light. Because the price of the stock is as important to a company's well being as the increase in oil/gas production.
TAT cap is bellow $ 200 mill. TAT couldn't find investors before and now MM destroyed remaining ones.This company will attract only short term traders. It may see oversold spikes but I do not see an upward trend for a loooooong time. The punchline will be MM taking TAT private at the expense of the shareholders. JMO
a tremendous amount of liquidity out. would be great if there were any buyers but when there are only sellers this is what happens to stock price, I guess they did not count on that--brilliant- hey another 10/1 reverse split and we'll be a $50.00 stock
Wouldn't a decent management come out to assure investors that TAT is in strong position to succeed and maybe even take advantage of present situation ?
It makes some sense that TAT is getting hammered more than others in the sector. Aside from your belief that TAT management is horrible, the acquisition of stream when revenue is being challenged by lower oil prices certainly causes some to doubt if TAT can make a go of it. I happen to believe that the balance sheet is in a good place for TAT to survive and do well. As a result, I've been buying. When the sector turns around, I expect TAT will too.
December 31, 2008.... wti oil price closed at $41.68...... TAT was at $7.20 ( post reverse split numbers)
Today wti oil price is at $63.57...... TAT is at seven year low $ 5.55 and collapsing.
TAT is producing double what it was in 2008.
The logic says that current price of TAT is not related to price of oil as much as some think.
The reason I have problem with your reasoning is that TAT shares are falling irrespective of market fundamentals. It has been and still is in the downtrend. TAT is going down when oil is high or low, when markets are down or at all time high and, it is not a short term problem. Even recent success did not stem the free-fall. It seems that there is always an excuse for why we been loosing our investment with MM for the last five years.
As for Stream investors, they had a chance to sell Stream shares before acquisition.
Most people invested in the oil and gas industry understand that with the current environment of oil prices dropping from over 100 to the $60-$70 price range the share prices of drilling companies in the industry will subsequently drop in direct correlation. This is happening all over the industry irrespective of what management may or may not be doing right this second. Some do not understand this market fundamental. Regardless of what the stock price does in the short term, management has had better success executing the drilling plan with tangible results, in addition to rectifying most of the old problems that previously had negative consequences on the stock price. Stream investors have an exponentially better chance of recouping their investment and potentially making money with TAT acquiring it than the status quo before the acquisition. So, it will most likely be in their best interest to hang on to the stock. The Stream shareholders also feel the same way because they approved the merger.
Yes we have been over this before....
Stock options with a Zero strike price are a benefit at any price over Zero.
I didn't say that it was mandatory for Stream shareholders to sell but, one may suspect that they will not be holding for very long in light of persistent downtrend irrespective of increase in production. The problem is not with a company, the problem is with its leader.
it seems like we've been over this before...
stock options are only a "benefit" if the stock rises in price
it seems to me that the large holders of stream shares...basically the handful of management that controlled a large number of shares...are not going anywhere. the reason they agreed to be acquired in the first place is the potential for the new company to exploit the assets they had, resulting - in theory at least - in share price appreciation. i have to believe that their horizon is more than a few weeks (the time since they've been acquired).
Sentiment: Strong Buy
MM is stubborn and his financial well being does not depend on TAT. His decisions should benefit both, company and shareholders. Instead, his actions are intended to benefit company at the expense of shareholders. As a result only insiders and employees benefit through salaries and stock options.
I feel you are correct about the stream shareholders. which will cause us more pain as prices per share will more than likely continue to drop. Have you tried to call investor relations (I just did) not answer leave message. wrote them the other day (again not answer) I know MM has purchased shares on open mkt. and he has to be upside down also, therefore I cannot figure out why a buyback or something has not been announced. but this continue drop in price HURTS LIKE.
If you are still "invested" in TAT, consider this:
1.We are about to hit all time lows.
2. Expect stampede from Stream shareholders. I don't think they ever experienced the kind of screwing MM and the management of TAT able and willing to provide.
3. Next comes de-listing from Russell 2000. We have seen it before.
The good news it may be over soon.