tap's value, page-8

Hi soj,

Thanks for your detailed and considered comments.

Without referring specifically to tap and whilst acknowledging the market is inefficient when it comes to valuing stocks, stocks that are fundamentally undervalued tend to rise over time because people are always looking for a bargain and insiders talk over bbqs etc.

Tap drifted down again today - if its such a bargain at this price why isnt it taken over by another mid tier oiler (I realise its not worth bhp or woodsides time) ? A mid tier oiler could probably pick it up for around $1 - $1.20. Maybe I'm jumping at shadows but something doesn't seem right. The share price seems illogically low. The Australian market is so small that all the mid tier oilers would have an understanding of each other.

Maybe bacci is right and the market is ignoring the stock after past years of management drift.

Overall I agree with your valuation analysis but I can't reconcile it to the current share price - its the difference that confuses me.