What is the deal with this stock? Everyday it begins with an ascent, only to be knocked down the latter part
of the day. Day in, day out. Are traders actually trading this thing for .15-.20 cents a day? I mean come on.
Make a commitment one way or the other !
The problem here I believe is that management is not making any effort to promote the stock. They need to give the financial community some reason to believe there is some decent growth potential here. I have not seen any press releases for a long time except for one dealing with someone they hired. Considering that the underwriters were able to sell this stock on the IPO in the mid teens even before they made some good deals make me wonder what they saw that we don't see now.
I looked at Breitburn as a comparator to MPO, they just bought $860 mm of assets from Whiting. They have been hammered with the LINE mess. BBEP projects ending '13 at 36kb/d prod, 60%+ liquids, MPO at 30kb/d, 70% liquids. Value for BBEP is around $100k of enterprise value for 36k b of daily prod. BBEP is an MLP, reserves are valued more highly, but at that no, $15 value per share for MPO. And it seems MPO will have more potential. And with $100+ WTI, the well returns are easily 50%+. BBEP paid almost $25/b for the asset, use that no for MPO value, $14 per share. And someone suggested 45kb/d '14 exit rate, value well into the $20s. Still wonder what we are missing or the market is? But Crum continues to buy shares.