Not an unusual event for shares on the ASX. The share is able to purchased or shorted on very high multiples so where there is no short term excitement - those in control of these activities can make the price whatever they want it to be, continue to squeeze their margin punters out of the stock, until they find an excuse to trade the share in volume again. It has dropped to current levels on relatively low volumes during the credit squeeze.
TAP appear to have done some brilliant work to resurrect themselves from a desperately unsuccessful drilling campaign where it seemed that any hole they were involved in would be plugged and abandoned. TAP was cash rich (more so now) because of brilliantly extending producing wells (Woolybutt) and used this cash to buy into a portfolio of extremely prospective territories in productive regions, especially in Australia, Borneo/Phillipines. Now a new CEO and it would appear that efforts are being directed to less risky opportunities.
So as you say, TAP looking great but in the current environment not sexy enough for the big punters so they will keep it shut down for the present. When it does move no doubt you and I will lag behind the action, again. Not a bad buy and hold (until the next excitement) at these prices IMO - if you have the cash. There are some very big drilling prospects coming up)
Add to My Watchlist
What is My Watchlist?