Macro Tsimmis

intelligently hedged investment

BUY BPZ Resources (BZP)—again

Posted by intelledgement on Wed, 30 Jan 08

OK, today we have more proof the market is irrational, if anyone needed it.

A Peruvian navy tanker transporting oil for our Houston-based E&P caught fire and sank today, and the stock is following suit, down 15% at this writing on heavy volume. If you don’t own any BZP, this is a great opportunity to buy. This company has an excellent relationship with both local and national government in Peru; this unfortunate accident is in no way a material event…has no bearing whatsoever on BZP’s great prospects for developing natural gas, oil, and—looking ahead a bit—electricity generation plants to serve Peru and Ecuador. See our original buy rec for more details.

This is a mindless shoot-first-and-ask-questions-later reaction by the market. We don’t see anything out there we like better than BZP around $11 and are buying a second tranche here (on a buy-on-close basis).

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