Gran Tierra is in our Small-Cap Growth Portfolio. My Fair Value Estimate is $10/share. They reported outstanding Q4 production last week but the report came out on a big down day for the market and no one seemed to notice. It appears that someone is making a big bet on it now. - Dan
PS: Our profile on GTE can be found under the Watch List Tab.
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optionMONSTER's Heat Seeker system shows that 3,400 November 7.50 calls were bought in one print for $0.20. The volume was above the strike's open interest of 2,126 contracts before the trade appeared, clearly indicating that it is a new position.
These long calls , which lock in the price where traders can buy shares, are looking for GTE to climb above $7.70 by mid-November. The options could be sold earlier at a profit if their premiums rise with a rally before then, but they will expire worthless if the stock remains below the $7.50 strike price. (See our Education section)
GTE rose 2.02 percent yesterday to close at $5.32, right at its 200-day moving average. Shares have been declining since hit resistance around $6.20 in early March. The Canadian oil and natural-gas producer, which operates in Latin America, has not yet scheduled its next earnings report.
Yesterday's call buying made up almost all of the total volume in GTE, which has averaged just 155 contracts a day for the last month. No puts traded in a session, a reflection of the bullish sentiment.
GTE
Re: GTE
7:19AM Gran Tierra Energy beats on top and bottom lines (GTE) 5.65 : Reports Q1 EPS of $0.20 vs $0.15 CIQ est; revs increased 32% YoY to $205.4 mln vs $188.4 mln CIQ est.
Operating highlighs:
Quarterly oil and natural gas production net after royalty and adjusted for inventory changes, was a record 23,424 barrels of oil equivalent per day, an increase of 40% from the comparable period in 2012.
Alternative transportation arrangements to minimize the impact of pipeline disruptions in Colombia, a decrease in oil inventory in Colombia, and production from new wells in Colombia and Argentina all had a positive impact on production in 2013.
Production before inventory adjustments in April 2013 averaged ~22,000 BOEPD NAR
Funds flow from operations increased to a record $108.6 mln from $78.9 mln in the comparable period in 2012
Cash and cash equivalents were $235.9 mln at March 31, 2013, compared with $212.6 mln at December 31, 2012
Operating highlighs:
Quarterly oil and natural gas production net after royalty and adjusted for inventory changes, was a record 23,424 barrels of oil equivalent per day, an increase of 40% from the comparable period in 2012.
Alternative transportation arrangements to minimize the impact of pipeline disruptions in Colombia, a decrease in oil inventory in Colombia, and production from new wells in Colombia and Argentina all had a positive impact on production in 2013.
Production before inventory adjustments in April 2013 averaged ~22,000 BOEPD NAR
Funds flow from operations increased to a record $108.6 mln from $78.9 mln in the comparable period in 2012
Cash and cash equivalents were $235.9 mln at March 31, 2013, compared with $212.6 mln at December 31, 2012