- Land-based seismic industry services sales and stock prices have been in a free fall due to oil and gas exploration companies’ spending cuts and project postponements.
- The sentiment is extremely negative, exacerbated by a March bankruptcy of one of TGE’s peers.
- However, TGE has strong financials and modern equipment. Seasonally strong quarters are coming, and TGE sees a pickup in demand, especially in the wireless services segment.
- TGE has a very favorable reward/risk trading below $4 per share and at 1.2x tangible book value.
- TGE has a $7.50 DFCF fair value price realizable within several years. TGE is also is cheap versus its peers.