ATP Oil & Gas Shares Dropped: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ATP Oil & Gas (Nasdaq: ATPG  ) dropped 10% for the third straight session as management's attempts to ease the market's fears are failing.

So what: Yesterday I highlighted rising bond yields on $2 billion of debt as driving shares lower and yesterday Global Hunter Securities downgraded the bonds due to "bankruptcy concerns." The company's CFO said in an interview that the company has "complete control of our destiny and we have no plans to miss any interest payments."

Now what: Momentum is definitely against shares lately, and I wouldn't look at this as a buying opportunity. Playing a game betting against bankruptcy is dangerous in the case of ATP considering the company has sold preferred shares and renegotiated payments to suppliers to save cash. It's possible that cash flow will be strong enough from the company's wells that ATP can survive, but it isn't a bet this Fool is willing to make.

Interested in more info on ATP Oil & Gas? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.



Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 11, 2011, at 5:24 PM, lovesstocks2 wrote:

    If you look at the last quarter's results, the company had more than $80MM in cash flow and even with the reduced flow of the one well, the cash flow should stay positive, plus they have another significant well coming on line. The bankruptcy crowd is just not doing their homework on this company.

  • Report this Comment On November 11, 2011, at 6:11 PM, EnergyKing wrote:

    I agree that analyst are wrong and do not understand how to properly evaluate this stock. Everything that I see and hear from ATP appears to be positive.

    Delay in bringing a well on by one month because they discovered that they can complete the well to produce from two zones sounds logical and positive to me.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1588308, ~/Articles/ArticleHandler.aspx, 10/24/2016 5:27:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ATPAQ.DL $0.00 Down +0.00 +0.00%
ATP Oil & Gas Corp CAPS Rating: ***