Lonestar Res Ltd New LNREF

This stock is seeing very little love

[jerrybe]

Top management

Very nice acreage

Healthy line of credit still available

Drilling within cash flows while expanding footprint with smart farm-in deals

Good profitability through significant use of hedging put in place last year

Low discount on their oil because EagleFord close to refiners

What else can I say? Potential upside with acreage in the Bakken. Steady year ahead, cash flow neutral operations. Einhorn should study this firm a bit more before slamming all the frackers. Yes, this is a capital intensive business and at $50 it is not a profitable business but if you are looking for a small player with a solid track record of building reserves, even during a downturn, look no further than Lonestar. 

They started out as an Austalian VC backed business and as such got their listing where they came from but for a better valuation, they should really consider a proper listing in the US. Their reverse split, recent farm-in deals and new addition on the board bodes well for long-term value creation.

GLTA!

[MDICKIRS]

On the conference call CEO said the split is a done deal and will happen on 5/22. Hopefully we get some positive volume when it is trading not as a penny stock anymore. Also he said they are not done looking for more deals in the EF.

[jerrybe]

Thanks for the update. I did not listent to the call yet. If they can pick up some acreage on the cheap like they did with farm-in deals from small private/public producers, they will do well. I wondered what is their view with regards to their comments from Einhorn. I was trying to replicate the computations he performed for PXD and it seems Lonestar is actually more nimble here. I still

[MDICKIRS]

They moved the split up to tomorrow. The Lonestar team did address Einhorn commets on the Conf Call. Buying land on the cheap sends a strong signal to me.

[jerrybe]

Thanks. Well, hopefully the stock split will help the firm gain credibility here.  It is being very nimble. We will get a revaluation upwards after demonstrating several quarters of solid growth!  Long and strong!

[MDICKIRS]

Sorry Jerry I just reread my note, It should have read that they did NOT address Eihorn comments. I like the post split action so far. Seems like it is headed the right direction. I need 11.0 to start making money. I am locked and loaded. 

[jerrybe]

I am tempted to add more as we are back down to about $7.40 on the ask... Seems there is absolutely no liquidity so far post split. Some weird things are happening in my brokerage account as well...and many websites mention billions in market cap...the reverse split is not as smooth as I would wish for but overall good move for sure. We are not a penny stock company.  We need production to