Currently another unloved Coy that has burnt many on the way down as TUI Oil production only has cashflow until 2015. At the most 2020 if commercial after such time and is taking on more water yr after yr.
2010 failures have hurt the SP greatly and these guys communication is definately sub standard IMO.
Why a multi bagger IMO.
Cash in bank value over 16c... so very little downside for 2011.
Tui cashflow value approx probably lower side of 10c now- we will see in quarterly. Yet that still a base value in the mid 20s. Giving a very negative value on management and the Coy.
Is this deserved- if it ONLY about the management ability to communicate to the market YES... but it is not.
THE LARGEST factor is all the Directors bought HUGE amounts 6 months ago when recorded gas and oil levels from the current drill.
Any hint of confirmation of these levels and we have a very loved stock again. Problem with these unloved stocks like SSN, MHM, CCC etc once upon time... they do not multi bag overnight. Often we need to hold for many months to be rewarded. Yet ANNs on current exploration not far away- we will gain interest from value investors seeking bargains IMO. Then the traders will come when a hint of oil is detected from current drilling program.
Patience is a vitue with the unloved yet cashed up and undervalued small cap Coys. These guys have runs on the board, bought huge amounts for small cap Directors nearly a mil each... SSN, CCC guys etc maybe looking for the next big thing IMO from profit taking...
Yet for my money, in this play the risk of the current drill, current cash and cashflow. Especially the insider trades leave this stock play hugely valued on the reward side over risk IMO.
Here are the Insider Trades from database FYI;
21-07-2010 PPP Neil Tomkinson 2,000,000 0.155 AUD310,000 BUY
21-07-2010 PPP Allan Tattersfield 2,941,407 0.155 AUD455,918 BUY
A million bucks in buys for a small cap Directors is something special and to be paid attention too... drilling the area now that got them to purchase 6 months ago. Join the dots on this unloved play IMO.
As stated with a few winners in 09\10- only a matter of time IMO.
Cheers JAY
PPP Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
