I just sold some KOG which has done well. For some reason which I can't explain my interest is now on TPLM. Is there anyone who could give me a logical reason why they feel TPLM will outperform KOG in the near future? This is not a "trick question." I simply have a gut feeling this co. Is going to do well.
Thanks for your input.
KOG really hasn't had its real move yet. The stock has been creeping up lately on acquisition chat and anticipation of a blow-out 3rd quarter. I'm looking at top line growth and a Q3 bottom line surprise (even with higher interest charges), followed by dynamo guidance moving into Q4. This is still a very undervalued stock if you listen to Alpha and Motley, One thing that's in the back of my mind is how can you sell a stock that you know is eventually going acquired or merged up, coupled with the ever increasing institutional interest in the Bakken story? Makes me want to buy some 2014 call options while they're still relatively cheap.
1. They set expectations low and beat them consistently.
2. Lower well costs (Rockpile/Caliber synergies)
3. Rockpile making a ton of money, Caliber getting up and running
4. Very strong balance sheet, relatively low debt. Much lower than KOG.
5. Excellent land position and new land added is right by their existing.
6. Simple balance sheet, operaiton.
7. They are less than 1/3 the market cap of KOG. They have much more room to grow compared to KOG.
8. Land around them getting bid up, part of it is that 25 foot thick oil layer that they found in the area.(Forget what it is called).
9. Not everybody's favorite stock yet. Relatively unknown compared to KOG. By the time that happens this will be trading over $20.
10. My favorite stock in North America for the above reasons and I am long term bullish Crude Oil. We are in the beginning stages of a massive increase in oil production.
DEAD ON NUMBERS that I also have. I see this company at $20/share over the next two quarters. They have the PERFECT Portfolio for a Major Buyout within the next 24 months. Wall Street is just starting to see how well structured and positioned this company is. Congrats to the Management TEAM!
Sentiment: Strong Buy
biggest boost will come when they drill Montana (2014) and when they can spin off rockpile and caliber (late 2014). Lot of hot money here right now and I have sold my trading shares but still holding a nice core position for long term. If KOG pulls back, you may want to reconsider as it has not run like TPLM has yet but it is coming. jmho