Various posters have commented on here regarding TAP's situation, but I prefer to take the market's reaction to the latest announcements as a better guide. TAP finished up 2.5c to 46c on reasonable turnover (judging by recent daily turnover). My read on it: TAP is looking at selling non-core assets, a rather broad statement indeed but I guess it might well mean TAP's WA oil and gas assets. It would be great to see TAP realise a reasonable price for these assets as the market appears (in my opinion) to place little or no value on them. Will the real buyers for these assets come out once and for all? Time will only tell. This could be a real game changer for TAP. Previous speculated estimates on here for TAP's WA gas assets have largely ranged from $50-100 million (from memory). Given the current environment I think $65 million would be a good result. Should Taunton also be on the chopping block, then perhaps $15 million there might also be a good result. This is all speculation on my part, but $80 million would definitely be a good result for the company. In the event that the above all takes place, $40 million could be set aside for Manora, $25 million to boost cash levels and $15 million for a share buy back. Why $15 million for a buy back? - in my opinion TAP is considerably undervalued and overlooked by the market. This will assist in boosting potential earnings down the track. Medium term I'd like to see TAP pay dividends down the track. It also has considerable franking credits (from memory). As for the exit from Ghana, this is definitely good news for holders as it reduces both risk and further financial expenditure down the track. TAP participated in one well and it didn't work out - time to move on! Any thoughts?
TAP Price at posting:
46.0¢ Sentiment: LT Buy Disclosure: Held
