Lightstream Resources Ltd. LSTMF

RE:RE:Market Inefficiencies Magnified

[jerrybe]

The lack of institutional investors has always been an issue with this firm. Just listen to last quarter's conference call, almost no analyst, just angry individual investors ranting on the phone...very funny to listen to but the joke is on us with the stock cratering as it is.

For me, the only rational action for management is to use their planned capex money for Swan Hills that was put on hold and use those funds to max out on their NCIB (share repurchase program). They can buy 5% of shares outstanding (10M shares) for less than $50M. It would (1) provide direct support for the stock price and (2) send a credible signal that they think the valuation is out of whack.

For those who have not already invested too much of their money in this stock (like me) and have some spare cash to put in oil and gas stocks, it seems this one is a screaming buy. Of course, no one wants to buy a stock that dropped 50% in a quarter...but valuation will reflect cash flows when the "risk off" state cools off. Same goes for PWE by the way. Can it drop more? Yes, of course. But at this point, the upside seems greater than the downside. Does one think the market cap can go much below $800M with fund flows from operations at around $600M? Maybe as we are in crash mode but I believe the likes of VET would come and snap this one up if were to happen. GLTA. Stay calm and do not sell in the current panic IMO.