I'm not familiar with the play in 2008, but what separates EGY from the long list of undervalued E&Ps is what RBC pointed out last week for its favorites--low leverage, good balance sheet, adequate funding, etc. Vaalco's quick response with a shareholder rights plan and a re-do of Guidry's employment contract shows the seriousness to the BOD of this threat. Just my take.
An SEC Form 4 is filed immediately for all insider buys and sells. It's an easy verification for someone interested in discussing the facts.
happyhorn52, Item 4 of their 13D, Purpose Of Transaction, doesn't sound charitable:
"The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.
The Reporting Persons believe that there are numerous operational and strategic opportunities for the Issuer to increase value for its stockholders, including seeking a sale of the company, hiring new management, changes in the capital structure, reductions in overhead expenses and tighter focus and discipline on development and exploration spending. The Reporting Persons may also seek to implement governance changes at the Issuer's management and Board levels, including a potential change in the Issuer's current Board of Directors and senior management team if needed in order to pursue and implement those opportunities to enhance stockholder value."
I don't see this as being a benefit to patient longs. I'd like to be bought out fairly. I've concluded EGY is too small to effectively compete and handle the risk of Gabon/Angola. This environment is for the big boys, as Cobalt concluded.
The latest institutional filings available are from the quarter ended June 30, 2015. The coming filings for Sept. 30 will be more revealing, of course. Since institutions only own 51% of the shares here, I think retail investors are more influenced by the more current Form 4 reports of insider sales, though in sum they do not represent that many shares sold.
And then you get in a story about insider activity that "while the recent corporate insiders’ selloffs (13,079 shares) are fueling worries around Ambarella’s future prospects. Ricky Sandler’s Eminence Capital disclosed owning 500,000 shares of Ambarella Inc. (NASDAQ:AMBA) via its latest 13F filing."
Whom do you trust? jsdvds7? Eminence Capital?
Now there's a headline for a Bloomberg story this afternoon that will be on every union hall bulletin board tonight.
"so that Mr Guidry can exercise independent judgment regarding the best interests of the Company and its shareholders when evaluating a prospective change in control even."
Read the comments from the Pacific Crest Securities analyst following the recent AMBA road show. They are summarized in the Barrons Blog ob Sept. 29. Yahoo has the link under AMBA news.
Leo Mariani is the lead on the RBC team. He's been around the patch and EGY long enough to know which end of the dipstick to read.
"1. Low Leverage and Well-Funded. A select few small-cap E&Ps actually have very strong balance sheets
featuring low leverage profiles and strong liquidity positions. We also see companies in this category well
positioned for potential M&A opportunities. These companies include EGY, MCF, MTDR, PE, & PDCE.
RBC summarizes: We believe there are still small-caps which remain attractive for buyers who believe in a commodity
recovery. Currently, our favorite small-caps include CRZO, EGY, ECR, EPE, MTDR, OAS, RSPP, & SN."
That last hour volume today with some green bars was a welcome sight. Somebody was afraid to wait for lower and had to buy the turn up.
It appears three entities made a joint filing and together they bought 1,149,000 shares between Sept 17 and Sept. 25. I love Item 4, Purpose of Transaction. Guidry and his board are on notice.