I don't think the CC was quite as bad as the posters indicate in the previous thread (Dump the Dog), but I believe the pps will go below $2. TTM earnings were only .09, although that is better than what Yahoo! has (-0.13 for some reason). Until the company proves it can earn more than .02 a quarter again, we might see $1.75-$1.80.
only news i can see are the downgrades from The Street and Zaks. i never really thought of either of those guys as market movers, but i guess with the volume being so low and the bleed consistently red, maybe people are looking for excuses to leave.
i kind of want to buy more but already have 1300 shares and way too much in the O&G space to feel comfortable adding. plus, what's the next catalyst apart from a buyout rumour? they just don't seem to have the scale to be competitive in this capital intensive business. they may have prospects and a new lease but without capital all we have to look forward to are small workovers that keep production constant.
i suppose a JV to develop their new lease would be a nice cataclyst, but if some bigger player wanted the block, wouldnt they have just bid for it rather than joining up with an already levered small potato?
the only thing keeping me interested is the NAV...market cap at 78MM and falling...
final thought - read the cc, man did the suits lose control of that message. i think they wound up saying 'covenant breach' a few times even though there was no actual risk of that happening. if people were looking for reasons to get out of your levered micro-cap stock a few years removed from BK, i would think a few inadvertent references to covenants would do the trick.