TransAtlantic Petroleum Shares Plunged: What You Need to Know

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 TransAtlantic Petroleum (ASE: TAT) sank 10% today after the company released fourth-quarter earnings.

So what: Quarterly revenue was up 47% to $36.7 million, but fell short of the $38.1 million analysts expected. The company also lost $0.15 per share from continuing operations, well over the penny loss investors had expected.

Now what: After continued losses, investors appear to have lost all faith today. Analysts are only expecting a penny in profit per share next year, and if the company doesn't deliver, it could be bad news. The company's $80.7 million of short-term debt is only offset by $15.1 million in cash, and it doesn't have the cash flow to keep this up much longer.

Interested in more info on TransAtlantic Petroleum? Add it to your watchlist byclicking here.

At the time this article was published 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.