RE: TAG Oil: Excellent Buying Opportunity One more thing...
There are a lot of analysts and newsletter writers waiting for the announcement of the East Coast spud. Once this comes, there should be a lot of money, which is currently on the sidelines, piling into this.
============================
Seems like this is an excellent buying opportunity for Tag:
1. According to the presentation on their website, they have $97M in cash after the infrastructure build. With a market cap of $367M, the EV is $270M.
2. There is a lot of production behind pipe and just waiting for infrastructure. They could be at around 5000 BOED in 3 months time. By summer, they could be at even higher production levels (see presentation - when looking at productino targets note TAO is in Q3 FY2013 right now) and are targeting 8000 BOED around end of this year.
3. Two bigs wells should spud Jan 15.
4. According to Canacord interview, East Coast drilling is on track for March 2013. This should provide more attention to this stock. You are basically getting this lottery ticket for free right now!
5. The chart is looking postive after the year end tax loss selling. There also seems to be good support in the high 5s, so downside risk is low.
6. China and US economies are improving which should support the Brent price and maybe even push it higher. This should push money flows into oi and gas stocks which have been really depressed.