Nikolay Tomov
4 Vote 0

Compton Petroleum Corporation Stock (TSE:CMT), (PINK:CMZPF) Is Trying to Go Back in Time

by Nikolay Tomov Mar 23, 2011
1 Comments
"If I could turn back time...". Most of you probably remember the famous female singer who said this phrase a long time ago, in one of her well-known hits. She is not the only person who wishes to travel back in time.

Apparently, this is what many businessmen and companies would be more than pleased to do too. It often happens that after a period of success and gains, the tide turns and they suddenly start accumulating losses. What they desire most of all in such moments, is to turn back time.

Compton Petroleum Corporation (TSE:CMT), (PINK:CMZPF) surely has nothing against going back in time. At least one month back. In late February, the shares were traded at $0.445, or 23.6% higher than at present. Over the last four weeks, CMT has been firmly going down.

In fact, the stock is making efforts to bounce off this bottom. During the last several sessions, the shares managed to recover a small piece of their losses. Yesterday, CMT finished the session at $0.34 - this is a bit better than the year-low of $0.31 deposited by the stock in mid-March.

Compton_-_Chart_-_23_Mar_2011.pngStill, the shares are trying to go where they were one month ago, but they obviously find it hard to reach or to break out through the $0.4 level. It is interesting to see whether they will manage to do this in the future.

No new company developments have been released in March, which makes it somewhat difficult to explain the behavior of the shares and to predict their performance in the future.

The company's fundamentals clearly indicate that Compton is well undervalued by traders - the market value is below $90M, while the company is worth more than $660M according to the latest financial statements. Probably, this suggests that the current share price of CMT is very low and it is a question of time before it goes up again.

Besides, Compton reported rising revenues and gross profit for the last quarter of 2010 in comparison with the previous three-month period.

8Compton_-_Logo.pngOn the other hand, however, there is no guarantee the shares will easily move up. The company had a huge long-term debt of $428M in the end of 2010.

Finally, we must remind the negative figures mentioned in an earlier article on Compton Petroleum. In 2010, total proved reserves decreased by 40% and their value fell by 48% compared to the end of 2009.

Comments (1)

1. Jon
April 20, 2011, 12:17PM

Quotes CMT has nowhere to go but up. Natural gas prices will rise as consumers move from oil to other sources of energy as oil keeps pushing to new highs.

Type the characters that you see in the box (5 characters).

This is a captcha-picture.