GREY:LSTMF - Post by User
Comment by
jerrybeon Oct 21, 2014 6:10pm
238 Views
Post# 23048895
RE:I HOPE
RE:I HOPE These are ridiculously low levels...one of the hardest hit from the latest drop in the E&P sector, one of the lowest rebound...we lost more than 50% of market cap in three months...this is not normal.
Two ways to play this:
1. Stay away as management has proved to everyone how much value they can destroy over time (down almost 90% since IPO five years ago...absent board...no accountability, etc.)
2. BUY all that you can: Value play at $8, more so at $7, more so at $6, more so at $5, even more so at $4...yes, market cap below CAD800M...this dog had a market cap in the billions not long ago...
The question is not how low can we go (I think we must be close to it given cash flows)...the question is more: Are there any other plays that offer a better return/reward than LTS? Here are some potential names:
1. AAV, DEE: Both got crushed this summer although business is at an all time high
2. Spyglass: Seems to be ripe for a takeover, but debt levels are high and JW is involved...
3. MEI: Small producer with midstream issues at its main operations. Getting into hub production at Entice...production could grow fast in the next two years, very fast...
4. SOG: Very unusual player with strong backing, all time low, about to grow at a much faster rate than before, all midstream solution is in place, owned and operated.
Quality names like Surge and VET have already rebounded strongly from last week. That's what happens when you have the trust of the market...