Longview Oil Corp LGVWF

Strong Oil Prices / Weak $CDN

[Nawaralsaadi]

We currently have a very unique situation for Canadian oil producers; oil prices are moving sharply higher along with a shrinking US/Canadian oil differential, meanwhile the Canadian dollar is weakening. This is a very profitable trend for Canadian producers and is highly unusual as historically strong oil prices have correlated with strong Canadian dollar, this unique dynamic will reflect very favourably on the cash flow of the Canadian based O&G companies. According to a CIBC June 16th report (prior to the last few days ramp up in oil pricing), Longview total payout ratio has dipped to 90% and D/CF has dipped to 1.6.

Longview is yet more undervalued today, than when I first wrote about the company on June 6th. The stock is an extreme buy at current levels; I expect a move to the $7-$8 range by Q4 (regardless of the Advantage review which could act as a supplementary catalyst).

Regards,
Nawar

[Canoutchie]

Well someone must agree with you as there was some pretty strong volume today, at least compared to the average volume.  I've got a half position here, just waiting to see which side of $5 this stock will move.  It'd be nice to see some confirmation of today's price movement.  Cheers.

[itsalie]

I agree that low cnd dollar and high gas prices are great though in this case I am not sure there is correlation. I expect it relates to gold prices and the US recovery which should drop the cnd dollar more if it continues.. But if you like the stock there is no sense waiting to see what side of 5 dollars it lands on, if you do you might end up buying at 5.10 or if you're luck 4.90, long range