TEMPEST IN TEAPORT

TMY

I sold my entire TMY position this morning. Originally, I thought the stock is under valued (it still is), and an update of its production and guidance would provide a near term catalyst. It did update its winter drilling operations and provided 2005 guidance, except the guidance is a touch lower than its guidance provided in November in its Q3/05 announcement. Although the guidance is only marginally lower, and valuation remains compelling, it has not participated in the most recent rally at all and oil is closer to $50 than $40. If the oil corrects here, where would the stock be? Moreover, I am alarmed by a couple of short term operational issues, and from the update, it appears that its Q4/04 could be a little disappointing as well. The company has had a few problems, management turnover, operational issues, minor miss of production target, lower guidance for both production and cash flow. Even though it probably has the lowest valuation in the junior space, could it be so for reasons? In any event, there are many other juniors to pick, many of which have upward revisions of its production and cash flow forecast, why bothered with a loser (perceived or actual)?