Lightstream Resources Ltd. LSTMF

LTS is still priced for bankruptcy

[jerrybe]

If you think of the current market cap of USD 65M relative to the debt amount of USD 1279M (almost all of it secured). You start realizing that going up by 6% today means absolutely nothing.

The firm will either survive this slump and the stock will go up to at least $2 or it will go bankrupt.

PWE just showed the markets that they have ample assets to weather the storm. I think more importantly they have also shown that they have taken radical steps to cut costs and improve operations.

If LTS were to show us they were very serious about keeping costs very low, they would also get an instant revaluation. As it is, almost no drilling. And insiders tightened their grip by buying shares last week. They are still being rewarded with 5c shares after having destroyed 95%+ of shareholder value since IPO. They still pay handsome CASH bonuses to guys like LaPrade (COO) after the Swan Hills debacle. Etc, etc.

I bought into PWE last week and I am much more confident in that stock than my litte dabble in LTS I took also last week. Probably both will go up. But, when it comes to LTS, it is really through a takeover and a complete overhaul of the firm. Still surprised Crescent has not come in to buy the rest of it. I think it is just a question of time. If they pounced now, they would basically only need to assume the debt and pay shareholders max $200M (CAD) to be done with it. A steal for those assets.