Bet on the Horse and the Jockey
ATP Oil and Gas (ATPG), once a market favorite, has been hit hard as oil prices have plummeted. The company has a market cap of $110 million, but debt of about $1.3 billion. However, over the last several months the company has announced asset monetization deals and most importantly, the deals have gone through. Proceeds have been used to pay down debt.
The company is still run by the founder and insiders own over 20% of the stock. Last week during a company presentation, the company announced that it was seeking out other initiatives to help maximize the value of the company's assets. Several days later, the company announced a $150 partnership deal with a unit of General Electric (GE).
Yesterday [Mar. 2], the company announced it had earned $3.34 per share in 2008. The company replaced 214% of its 2008 production, an impressive metric by any standard in the oil industry. The market can't seem to get over the debt, but the biggest portion, $1.04 billion, is not due until 2014. The company is in fine shape to meet all debt covenants for 2009.
Insiders haven't been selling at all and with 20% insider ownerships, the executives are behaving just as they should be -- like shareholders. Each share of stock today represents over seven barrels of proved and probable oil reserves.Finally, Goldman Sachs (GS) has weathered the storm exceedingly well relative to peers. If we are going to blame the top brass at Citigroup (C) and Bank of America (BAC) for the disasters those banks are facing, then it's only fair to give Lloyd Blankenfien some credit for steering Goldman away from complete meltdown. It's been the only financial to raise outside capital from Warren Buffett.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV