Where's the bottom? And.. Positive effects of share issuance
Anyone wanna take a shot? Seems this company is in significantly better shape than the last time it traded in the 5's. I thought it was fairly valued in the 7's.
Also, I don't know why people are so fearful of dilution. I think most people believe that additional shares are issued at no benefit to the shareholders/company. The proceeds raised from the issuance increase the Net Asset Value of the company and theoretically, your percentage of equity ownership decreases but the dollar amount of equity should remain constant. The two main concerns with share issuances are the price at which they are issued (discount or premium) and what the proceeds are used for. If shares are issued at a steep discount and used to cover overhead expenses, watch out below. However, if they are issued at close to market price or higher, and used to purchase assets that will appreciate in value, than there is tremendous upside. I've seen many companies issue shares to pay salaries, overhead, etc and it becomes a perpetual way of keeping the company afloat. TPLM has the cashflow to pay for its operations and I believe proceeds will go to acquire acreage and enhance current assets (e.g. Rockpile).
The only thing that concerns me a bit at this point in time is why insiders were selling in the mid 6's. The CEO disposed of almost 100k shares in the $6.40 range and that does not bode well for investor confidence. Anyone have any thoughts to contribute?
Correct but wouldn't a sell immediately be followed by a buy for the same amount if he was confident in the company? I intend to sell several companies in my long-term portfolio to lock in my 15% capital gains but then purchase them again right after so that I can maintain my position while capitalizing on the gains earned prior to year end.
Silence is killing the momentum. I took profits today and moved over to my OAS holdings after it dropped on beating earnings and they are over 30kbode. I still have my original purchase but lost some confidence. The insiders selling shouldn't worry anyone as the year end tax changes could be massive unless Congress gets their heads out of their azzes.