DPTR and Natty gas M&A

[meanbird]

Hello all. 1st post on the site. I hope these forums arent exclusively for biotech.

Anyone heard of Delta Petroleum (DPTR)? Was a $20 stock in 2007 and is trading now between 1.40-1.60. Theyre a natural gas company and are selling off assets (they hired Evercore Partners and MS last November for strategic alternatives). They own many profitable and potentially profitable wells around the midwest. Their book value/share is 2.60, yet they're trading around 1.50. This is because of debt and troubles with their creditors. Their CAPEX is limited to $10M a quarter, which obviously is not enought to fully utilize their wells. Hence, the selling of assets.

Anyways, I listened to the last investor conference they had about 2 weeks ago and their CEO stated that they're negotiating with banks about increasing their CAPEX. They entered into a non-binding agreement to sell a 37% stake of one of their wells on 3/18/2010. I think this, along with further M&A plans, will greatly help them with their negotiations w creditors. If they can get a deal to get more $ to drill on all that land they have, this stock is really going to pop. Chart is very sexy, and I truely think this can spike to $4.50 a share by summertime (if you look at chart, you'll see what Im talking about).

GL

Oh, BTW, I forgot to mention this. Buddy of mine is a daytrader and uses Bloomberg Professional, and they had a bulletin posted by JPM the same day DPTR announced their $400M JV deal 3/18. It stated that the fair market value of Delta is 1.85. That deal is non-binding, which is why it's not at 1.85 now. Wish I could post that link, but I don't use Bloomberg professional.

[Cosmic]

What is too like about it? Mostly nothing.

Too much stock, too much debt, too small, in the wrong business.

The big picture is natural gas prices are getting hammered and that is not about to stop. Under $5 mmbtu, sliding rapidly to $4.

Big guys are improving their costs structures, can produce at a profit way, way down the chain (Maybe a buck and change). Tons of supply, big NG glut that is not going away soon, nobody willing to cut back to attempt to stabilize prices.

Worse yet, lots of imports of LNG trying to come into the country. Willing to dump at any price. Some probably at or under $2. Don't be a player in a minor company with just about zero chance at being profitable, might not even make expenses at some point.

I don't see any thing sexy about the chart, more like DOA, just not yet buried. Understand the big pix first. NG prices are going down, down. NG war with prices maybe getting to $2, like the old dazes.

Here is some older links, still good tho. Also knowing Penny Stock Preacher pumps this stock and others like it. Totally insane supposed reasoning. Last guy standing is not going to be the likes of DPTR or many others like it. Ah, them Penny Stock advisors, does not get much better than that.

LNG surge could delay new domestic shale projects | Energy | Chron.com - Houston Chronicle

Natural Gas Glut Overwhelms Speculators, Defies Rally (Update3) - Bloomberg.com

[meanbird]

I like to make small investments in companies that the majority of people consider DOA. We disagree on the chart.

Billionaire Kirk Kerkorian (same KK who sits on MGM bod) owns 1/3 of DPTR at an average of 13 pps.

This link is an oldie but a goodie.

Shares of Delta Petroleum rise on takeover speculation - The Denver Post

This link is also very interesting for Delta.

Energy Department to Change Natural-Gas Data Statistics - WSJ.com