A few institutions selling down on this one - UBS being one of the bigger ones...
I hope this doesn't signal any future bad news that the fund managers 'know' about. Probably just regular fund adjustments and shifting of funds ?!?
Comments?!
I read in The Advertiser that profit taking was occurring this week with oil stocks despite the rising oil price. I don't understand a lot of things in the market and I can't explain that either.
I see a rising share price, a present retracement, and continue to hold with an expectation of a future rise. If I'm proved wrong - then I'll sell.
TAP keeping its ground due to high oil prices perhaps. Yesterday saw quite a high volume sell off once it threatened to break out past 2.60, but found support again today. I'm keeping mine unless it looks like support around 2.30 won't hold. UBS must have pretty much sold out by now, and TAP are unhedged so high oil prices more than offset the strong AUD for now.
If you use EPS as the main/only measure of value for Oil Producers & Explorers then maybe it looks quite expensive. Imho that's not a very useful way of assessing the value though...More important to me are debt levels (none), share dilution (none, in fact they've bought back shares), exploration targets, etc.Hi it looks quite expensive still
Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 0.5 2.7 7.3 8.8
DPS 0.0 0.0 0.0 0.0
thx
MS
Recovered nicely today from the slightly disappointing news from Woollybutt 6. Still, there's bigger fish to fry for TAP in the future according to their presentations. Hopefully at least one of these will be a success, they haven't had the best of luck in the past 2 years.
Indeed - the SP has increased and stayed somewhat more steadier than other oil shares (esp AED).
I was looking through their announcements etc, and was wondering of what upside is due for announcement?! Can anyone elaborate?
I expect this one to sky rocket, as I've sold out of it. Its wise investment strategy to bet against me.... hehehee
Overpriced based on what? They have 3 potential 'company changers' lined up for the next 6-12 months that could double or treble their gas and oil reserves. It has had a decent run and it's currently consolidating. Don't know where it will go in the near future, but still has enough potential upside for me to hold for a while.Tap is currently overpriced IMHO. It's a well run but small company. I had it a while ago at 1.60 where it sat for ages. I think it will go down before it goes up as it's already had a decent run.
No Other Oil Company Offers A Better Potential Pay-Off size
Then there's oil. With the oil price hovering around the US$100 a barrel mark, we are constantly on the look-out for excellent quality oil stocks to recommend to our Fat Prophets Members.
We think we've recently found almost the perfect Australian oil company that will be able to prosper from both the strong oil price and its ongoing aggressive exploration budget.
In our most recent report to Fat Prophets Members, we said…
"In our view, no other oil company offers Members the potential pay-off…should it hit the jackpot with its exploration and development well-drilling program."
"With such as aggressive exploration program supported by a strong balance sheet, and the added spice of possible corporate activity, we believe the prospects for (this company) are better than they have been for many years."
From a charting perspective, we said…
"Given the clear revival in longer-term upward momentum, we believe the company retains the potential for further gains in the coming months."
We concluded our report by recommending our Members BUY the shares at around $2.42*.
Even though that recommendation was rushed to Members 2 weeks ago, the good news is that today the shares still trade around the $2.40* level
That means people who sign up today to become a new Fat Prophets Member can buy the shares at the same level we were happy to recommend them as a BUY 2 weeks ago.
That sort of opportunity doesn't come along very often.
Issue Date 27/07/2007
Back Issues
Dog of the Week
Issue Date 18/01/2006
Back Issues
Tap Oil - The Cattle Dog (Running Now and Will Run All Day).
Tap Oil (TAP) has established a solid production base on Western Australia's North West Shelf and is looking to expand its exploration and production interests in New Zealand. The company is a high quality mid-cap oil producer, with an enviable track record of profitability and exploration success. Tap has aggressive exploration activities in place, comprising an extensive well-drilling program that is aimed at significantly increasing its reserves position.
Financially, the company is generating strong cash flow from robust oil prices, maintains a cash position of close to $100 million and has no debt. Adding to the bullish outlook is the fact that Tap is highly leveraged to the oil price with minimal hedging in place. With investors having significant exploration exposure through its drilling program, upside potential remains.
Have been out of this for a while, but still on the watchlist. The upmove is on low volume, but it is a bit strange as they haven't reported yet that the production problems have been resolved. Maybe worth another bite.Mmmm..... must only be me noticing something odd happening with TAP the last 2 days. Are we to be finally rewarded with a takeover?
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