Geopark Share Discussion Threads

[2006stocktaker] 12/2/2014 18:02

Looks like my broker's inefficiency did me a favour. Just managed to increase my holding by buying the US shares at a fraction of my sale receipts in the UK.

Incredibly undervalued now IMV. Very happy with the reduced dilution.

[tyler90] 11/2/2014 22:24

Good write up.

hxxp://seekingalpha.com/article/2007741-smaller-ipo-creates-bigger-opportunity-in-geopark?source=nasdaq

Key points of article:

1. The cold reception for GeoPark (GPRK) last week following a smaller than planned IPO provides an opportunity for long term investors to buy one of the fastest growing E&P companies in Latin America.

2. Moreover, GPRK should receive greater visibility after switching to the NYSE from the Alternative Investment Market (or "AIM") in the U.K. and as investors learn more about its unique and attractive growth story.

3. The downside is limited by the low absolute EBITDA multiple and high insider ownership while expected significant production growth provides upside potential.

[tyler90] 11/2/2014 22:13

Messrs O'Shaughnessy & Park et al please take note, Zengas is part correct and you could do worse than spend some of the cash on a professional investor relations strategy. You have the product but nobody will buy it unless you sell it!

I believe moving to the NYSE is a good move and scaling the offer down may be a blessing in disguise. It means that dilution will not be as great and less money raised will ensure that management continue to be prudent with regards to choosing which projects to invest in. I have come across many companies who have allowed the proceeds of an oversubscribed public offer/placing to be wasted away on speculative investments.

[zengas] 11/2/2014 16:59

21/1/14
The Company has commenced an initial public offering in the US of 20,000,000 of its Shares, at an expected price range between US$8.00 to US$10.00 per Share ("US Offering").

Barely 3 weeks later it's even lower and well outside the guided range at $7 which works out at 425p share and still won't improve liquidity imo with only 14.3m new shares instead of the 20m shares they were expecting to get away.

£6.25 a month ago. Over £7 a year ago. £7.50 Q3 2012, £7.50 late 2010.

Despite growing reserves and production significantly, this is woeful and imo not a wise decision at all.

They should and could have done much more to promote the company and attract investors to the company in the UK over the last 2 years.

[tyler90] 11/2/2014 13:12

PS I meant to say US investors and since there are more of them across the pond the interest in the stock even if it is proportionally greater will have an impact on the share price. As usual AIMHO and DYOR.

[tyler90] 11/2/2014 13:09

Thanks Woody. It is natural for any 'boring' conventional stock to take time to be established in any market unlike the 'Twitters' of this world. However, GPK report regularly on their operational activity (next update in April I think) so it will not be long before investors realise the potential and future growth prospects of a company that has good cash flow, an experienced proven management and a workable realistic business plan.

[woodcutter] 11/2/2014 11:47

There's no doubt GPK is undervalued but like sailing john i felt getting the offer away was looking a bit precarious so i sold out just above the £6 mark for a reasonable profit, which in hindsight looks to have been a lucky break.

The timing hasn't helped with the emerging market currency fallout.

Thought about buying back in at this level in the hope of some momentum on the NYSE but have decided against that now on the basis that the liquidity is no better than when on AIM.

It's been a low profile board with excellent contributors so good luck to those still holding i hope it works out for you.

aimho.

Woody

Post Note: The spread has gone bonkers.

[bbluesky] 10/2/2014 18:53

T90 - quite agree, but my wife is being reluctant to sell her rocks for the prospect - I get "Buffet can Shuffet ....", the move to NY is imo a logical and shrewd one and if nothing else there are a lot of fund managers who would like an excuse to go to Brazil for the World Cup and Olympics, so I think it will be on the radar, even if the engines are elsewhere. I am not normally this cynical, but fresh from The Wolf on Wall Street...I am happy at the low dilution, this is one of those rare stocks where the money just flows in, so nothing like a bit of fiscal constraint to avoid too many and not so good acquisitions too fast...the Directors buy in is v. significant, this is not a cash in IPO. Darling, wouldn't you like one so much larger and sparklier on your neck..I keep trying

[tyler90] 10/2/2014 17:41

I am sure there are people who are waiting to buy back in again after having sold out. It is going to be interesting when the flood of buying begins. The odd buy since Wednesday shows that some are already back in. Good luck but I am of the Warren Buffett school of thought-value will out in the end just need patience.

[bbluesky] 10/2/2014 17:15

Thanks for pointing that out SJ!

[tyler90] 10/2/2014 16:36

Whealan, agree with you but the offer is still above 500. If the spread narrows and the offer is around 475/480 then people will be tempted to buy in. As usual IMHO.

[whealan] 10/2/2014 15:37

If I remember correctly, the AIM quote was to provide a more convenient platform for some of the directors and staff to sell the shares they owned or had been awarded if they wanted to.

They have always been tightly held and it seems to me that buying them here in the dying days of the AIM quote while they are being driven down by people (including MMs) who don't want to or can't trade them when they are quoted in the US should be a no-brainer.

[tyler90] 10/2/2014 10:33

Unconditional dealings in the stock are expected to begin on 12 February so that is probably why you could not get a quote. I reckon most UK PI's are apprehensive about having stocks listed in exchanges abroad (even NYSE) and those who wanted to sell have already sold. I hate using this word but £4 is a no brainer!

[sailing john] 10/2/2014 10:24

T90
Totally agree re price/value
Closed at $6.45!!! in US on Friday with lots of small PI sized trades - so already more interest than the UK but I'm surprised at the fall

A big price differential US $6.45 (£3.93 vs UK £5/5.3)

Not sure why UK PIs not selling AIM and buying NYSE!
As I have done! - well the first bit - couldn't get a quote for GPRK last week but will try again today.

GL - SJ
Edit - Re AIM price - perhaps not possible to sell? so price quote irrelevant?

[sailing john] 06/2/2014 16:43

I have no idea

My only experience of US stocks is with Renesola and for a midcap the daily volume is massive and daily movement of over 5% not uncommon - I assume very rich PIs at play!

So I am encouraged by the US listing once they get known - trading on AIM was insignificant and therefore the price did not necessarily reflect value.

My only concern now is that the original intention was to offer 30m - and now 13m so which projects are going on the back burner?

SJ

[loafingchard] 06/2/2014 16:37

SJWhy the struggle though , the company looks solid to me , excellent production etc , ok some debt and large bod shareholdings . Perhaps our production is too conventional ;) The uk market has largely ignored it and now the US don't seem to bothered either . Puzzling for me at least .Having said that the US investors weren't bothered about GWP/GWPH for a few months after ipo then bang , up +600% in a few months . GL all

[sailing john] 06/2/2014 16:04

Offer reduced to 13.5m expected price $7-$8

History
20/1/14 - 20m at $8-$10

22/10/13 - NY listing/offer delayed

10/9/13 - Original notice 30m - target date Nov 2013

I thought they were struggling to get the offer away which is why I bailed out in October when they delayed the listing/offer

Directors investing at new price which should help

Once established in US they might do well!

Remains on watch list

GL - SJ

[loafingchard] 06/2/2014 15:16

So 8-10 bucks has become 7-8 . And 20M offering has become 13.5M shares .Surprised at the poor response , what are we missing?

[2006stocktaker] 30/1/2014 11:23

I had a reply from my broker. They say that they have been informed that cannot hold this particular stock on their trading platform. This is despite the fact that they do trade NYSE stocks. My broker has informed me that they will issue me with the certificates.

My concern is that I will then find it difficult to transfer these certificates to a broker who can trade them.

[2006stocktaker] 28/1/2014 20:40

I've just been notified from my broker (interactive investor) that they will be unable to offer a trading facility in this share once they have been transferred to NYSE.

Hope this is a mistake, I will call them tomorrow.

Has anyone had anything similar from their broker?

St

[varies] 23/1/2014 10:39

tyler90
Bravo !

[tyler90] 22/1/2014 16:06

Stevenlondon3, a lot depends on what your reason was for buying in the first place. The company have never promised a dividend and feel that capital growth will be better achieved by making the stock more liquid and listing in the US.I think this is the right move and will be the catalyst for propelling the company's share price. As I stated yesterday, institutions are getting a good discount at even $10 so I expect the offer to be oversubscribed and the price will be nearer $20 pretty soon.There, I have put my head on the block now haven't I?

[loafingchard] 22/1/2014 14:57

Can the company not just grow for now ?

[stevenlondon3] 22/1/2014 10:46

I am a shareholder but reconsidering my position. Attending various Proactive meetings junior resource companies are often asked - What is the exit strategy?
GPK's answer seems to be transfer to New York. I see no prospect of a dividend or exit. Hopefully strong holders can put the positive case.