RE: RE: Still Extremely Undervalued ??The company has been pummelled because of its balance sheet but if you look closer, the negative working capital (current asset minus current liabilities) was $36M at the end of Q1, reduced by $6 million to $30 million at the end of Q2, and further reduced by $8 million at the end of Q3, to $22 million. They expected record activity in Q3 w/ tremendous opportunities but these opportunities hit the brick wall in Q3. That's pretty darned good working cap generation for a crappy 3 quarters, including the end of 19 consecutive quarters of profits (Q3 a couple of million loss - including an accounting adjustment of $1m. loss from a disposition)!
I am only speculating but had they known what would happen to Q3, they could easily have reduced the negative working cap position by a LOT more than just the $14 million that they did in the six months from end of Q1 to end of Q3. Heck they even spent $24 million in acquisition of data libraries in the current year! Had they not done that they'd be laughing!
So the unavailability of a functional crystal ball lands them and their stock price, here. The good news is that they obviously didn't just learn about it when the numbers came out and they've been actively planning and working on the cost cutting. These guys are smart, have a great franchise and reputation; valuable assets and contacts, and you need seismic for drilling. The tighter the money is, the greater the pressure in putting the hole in the right spot. Good luck.