GREY:LSTMF - Post by User
Comment by
CDNOilon Aug 07, 2013 11:45am
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Post# 21654207
RE:RE:Leak In Pipe
RE:RE:Leak In Pipe
Agreed!
I don't understand why they're constantly complaining about the company.
Yes, the company's performance on the market has not been good.
That being said, that is mostly perception related. It's not like LTS sets the price of its stock.
People are barking up the wrong tree right now.
If you think they're doing a bad job operationally that's one thing, but saying that LTS is a bad company because its share price has gone down while the price of crude oil has gone up makes no sense.
If you're happy with that the company is doing operationally, just be happy you can pick up shares this cheap. Sooner or later, you will be rewarded.
Market price is equal to market perception. It's not necessarily equal to value.
If you want to sell your shares ASAP then market price being lower than value is definitely not good.
However, if you're actually investing in these shares then you should be happy the price is fairly low despite solid production and high price of crude oil, especially with such a high dividend. You're accumulating more and more shares at prices below what the shares are actually worth.
In the end, you'll be rewarded one way or another. If the investment community notices that the stock is undervalued, the price will go up and you'll make money by selling your shares at a higher price than you paid. If the investment community doesn't notice then the company will pay out its earnings to stockholders (through dividends).