GREY:LSTMF - Post by User
Post by
halfpennyrichon Feb 06, 2014 9:49pm
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Post# 22182213
time to be a contrarian
time to be a contrarianEnjoy!
Lightstream Resources (TSX:LTS), by Matt Smith
As a contrarian, my top stock idea for February is beaten-down intermediate oil producer Lightstream Resources.
Over the course of 2013, Lightstream’s value plunged by 43%, driven by concern over the company’s truckload of debt. But since announcing a revised capital plan in November 2013, its price has bounced back nicely by 18%.
This rebound should continue as the revised capital plan gains traction and debt falls. Lightstream is currently quite attractively priced with an enterprise value of 4 times EBITDA [earnings before interest, taxes, depreciation, and amortization] and 16 times net oil reserves. More promising are its high-quality Bakken and Cardium acreages, which will eventually allow it to boost oil reserves and increase production.
Fool contributor Matt Smith does not own shares in any of the companies mentioned.