Like all stocks that have low daily trading volume, TGA can have big percentage moves from day-to-day.
Buy the dips since the fundamentals support a much higher price. TGA is about to report quarter-after-quarter of increasing production and they will have a very large proven reserve addition at year end. TGA is a pure play on oil. I know of no other E&P company that has this much exploration upside.
Dan
TGA
Re: TGA
Look at the 30 day chart and you will see what I mean. Last week TGA was down over 40 cents one day on no news. This is typical for stocks that trade less than 200,000 shares per day.
IMO "Fair Value" for TGA is now $12/share. It has HUGE exploration upside so I consider it a very low risk BUY at this point with a lot of upside. See my September 21 newsletter "The View From Houston" for all you need to know about TGA.
Dan
IMO "Fair Value" for TGA is now $12/share. It has HUGE exploration upside so I consider it a very low risk BUY at this point with a lot of upside. See my September 21 newsletter "The View From Houston" for all you need to know about TGA.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: TGA
BUY THE DIPS!
Several of our members have large stakes in TGA. When it dips, like it did yesterday, they call and want to know what's wrong. NOTHING.
TGA is:
1. Trading below my Fair Value estimate of $12/share - what I think it's break-up value is.
2. It has a Rock Solid Balance Sheet. Hard to get in trouble when you have very little debt.
3. It is going to report quarter after quarter of increasing production, on its way to 20,000 bopd within two years.
4. It is going to report a large increase in proven reserves at year-end which is going to significantly lower its DD&A rate going forward < this means higher EPS.
5. It has incredible, near-term exploration upside. OXY and Total are now drilling exploration wells in Yemen that are potential "Game Changers" for TGA.
6. TGA is a first class organization with a first class management team. They are well respected in Calgary.
7. TGA is our only Pure Play on oil.
Stocks with low trading volume often have big dips / corrections as they move higher. TGA is pure oil so when oil prices go down, like they did yesterday, it will dip. BUY THOSE DIPS.
TGA is not going up in a straight line, no stocks do. However, I believe it has the potential to go a lot higher over the next year so it will stay in the Sweet-16.
Dan
Several of our members have large stakes in TGA. When it dips, like it did yesterday, they call and want to know what's wrong. NOTHING.
TGA is:
1. Trading below my Fair Value estimate of $12/share - what I think it's break-up value is.
2. It has a Rock Solid Balance Sheet. Hard to get in trouble when you have very little debt.
3. It is going to report quarter after quarter of increasing production, on its way to 20,000 bopd within two years.
4. It is going to report a large increase in proven reserves at year-end which is going to significantly lower its DD&A rate going forward < this means higher EPS.
5. It has incredible, near-term exploration upside. OXY and Total are now drilling exploration wells in Yemen that are potential "Game Changers" for TGA.
6. TGA is a first class organization with a first class management team. They are well respected in Calgary.
7. TGA is our only Pure Play on oil.
Stocks with low trading volume often have big dips / corrections as they move higher. TGA is pure oil so when oil prices go down, like they did yesterday, it will dip. BUY THOSE DIPS.
TGA is not going up in a straight line, no stocks do. However, I believe it has the potential to go a lot higher over the next year so it will stay in the Sweet-16.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group