TAP been a dog and the management is poor. That’s really is a hard thing to say, lots of small E and P companies would love to have AUD 100 million in the bank.
The real problem for TAP is the perception in the market place which you comments so rightly highlight.
The NW shelf has supplied the cash to enable TAP to fly, the Philippines area and it expansion else where has will enable TAP to transform it self.
Unfortunately the Directors and Management have failed to inform the market that it is capable of using this cash in any sensible timely fashion for this transformation.
Why the Director allows Paul Underwood to stay on for so long after he has announced his retirement is completely baffling. Hence there is a need for a complete clean out of the Board of Director and Senior Management!
So why invest in TAP.
My investment in TAP has been based on two things
1, TAP been a dog for so long and so disliked by the market that it is dramatically undervalued by the market.
2, TAP pile of cash will and I believe has attracted the attention of predictors interested in taking the company over, I would do it myself if I could raise the AUD 400 million needed.
Hence TAP still a buy and along with ARQ one of the cheapest and safest (no country risk on production) oil producing companies in the Australia stock market,
TAP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
