Mart Resources Inc MAUXF

Chen, today

[stockhunter323]

1. Nigeria is the worst place to operate an oil company.  
Wrong, Nigeria has the highest premium for its oil produced while Canada is getting huge discount on its oil.

2. 65% tax holiday expires by the end of the year so Mart is depleting the field to pump as much oil as possible.
Mart is paying ~30% corporate tax now. There will be a lot of credit pool to carry Mart for possibly a year or two after 2013. Plus the new discoveries could subject to the new 5 year holiday according to Nigeria law and the company intend to apply it like before. Mart is choking down the oil production because of pipeline constrain, no way they are depleting the field.

3. Recent pipeline disruptions.
True, but the AGIP pipeline could be coming in the second week of April according to recent filing. That is next week. We all knew the pipeline had issues before. 2 years ago MMT got paid while the pipeline was in repair.

There are many other points that are not worth my time mentioning. The bottom line is that MMT is under severe short attack. I have some dry powder lately as I have been playing safe, I am using some today to buy MMT on the cheap. MMT dividend will show up next week, I won't be surprised that some shareholders would use the dividend to "reinvest" at cheaper price. This is a short attack, if next week pipeline is fixed when dividend checks show up, the stock can't stay this low I believe.

MMT will publish its year end reserve soon. Remember since UMU 10 was not included in the reserve report, there will be another report one month after this one, just like last year.

Regards,

Chen