OTCPK:MAUXF - Post by User
Post by
Lousytimingon Aug 29, 2012 1:43pm
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Post# 20275211
Chen's take
Chen's take "Mart Resources just released its quarterly earning report. It was a disappointing quarter for sure. However, I want to remind everyone that historically MMT experienced very volatile earnings. This time, however, it has a few items that are one time losses.
1. They had to re-price oil in storage at the end of Q1 that lead to
one time loss of 10.3 million.
2. Mart share of production dropped from 82.5% to 52% due to the lack
of drilling. They started drilling again on July 4th, which mean Q3
would be a lot better.
3. AGIP pipeline claimed the lossed 18% during the quarter. Usually it
is between 8-10%.
If you added it up, the actually earning should be around 20 million or about 6c. MMT deducted 8 million tax though the actual tax bill was 2.6 million(from the quarterly filing), that also lead me to believe the actual earning is around 20 million. They also declared 5c quarterly dividend, which is nice.
It looks to me that the share price will be significantly lower at open. I went through many up and down of MMT for the past 3 years. I always wondered if I had bought some on the bad quarter and sell some at a good quarter I would have made a lot more money. Though in practice I never did it. This is a quarter that looked "bad" but it is actually not that bad."