We'll I just received an interesting link to a board over at the motley fool website. (If you posted the link at my blog please send me a quick email, I would like to talk to you.)
To begin I would like to address a few of the statements in ValuePEG's initial post.
ValuePEG states, "In Kevin's opening paragraph he states "I have never read any analyst reports nor have I read any comments by CanadianValue (a blogger was mentioned in the comment by Jason)". This was a bold face lie as he posted the following on his blog on Oct 23rd"
Please read the comment in context. I have never read any analyst's reports on ATPG and I have never read any of CanadianValue's comments on ATPG.
1) ATPG hasn't earned a dime in profits as a corporation.
Bold face lie, not only has ATPG earned a profit based on GAAP rules in the past, more importantly they have been cashflow positive the last 9 months on a operating basis, as most investors look for in stocks in the E&P business
Dear ValuePEG, please learn how to read a balance sheet. As of the end of 2009 they had negative cumulative earnings. I'm sure if I looked at the latest quarterly it would be even worse. Secondly, No matter angle you look at the income statement a profit is a profit and a loss is a loss. Go ahead a use Cash Flow if you like but that is what they did with internet stocks back in 1999. Lastly, speak for yourself, but please don't speak on behalf of other investors.
And finally, "To toot my own horn the writer has 22 followers as of this writing here at SA, while I have 31 at MF CAPS"
Congratulations you are my hero, do you pat your own back regularly?
Then we have another commenter named Justmee1 ask Swizzled (Devin Shire aka CanadianValue) the following question.
And Morgus will move additional P UD reserves to developed reserves, raising asset values again 1H 2011? How exactly is the asset value calculated? (I presume that developed reserves are higher value, but how much higher?)"
And then we catch Devin with his pants down.
"I don't know enough about the calculation to offer an opinion."
Well finally some honesty out of Devin Shire (CanadianValue). He knows nothing about reserves, how they are valued and walks around telling everyone he's an expert in oil and gas.
And then we catch ValuePEG with his pants down.
"As far as how exactly it is calculated i couldn't state but it is obvious that PDP counts at a much higher rate then P.D.P." (I believe he meant PUD's)
Thanks for attempts to lecture me on ATPG. I am embarrassed I wasted my time discussing the stock with these guys. You both call yourselves value investors, yet you haven't determined what assets the company owns and tried to value them. It appears that these guys are attemping to determine how to calculate a net asset value over at the motley fool boards.
You can follow their ongoing discussion here:
Have a great Remembrance/Veterans Day Holiday!