Long Run Explor Ltd Ord WFREF

RE:RE:RE:RE:RE:LRE is a Fantastic Buy

[jerrybe]

Reflect,

Thanks for your earlier response. Sorry I am not all the time on the board so my responses can be delayed.

I couldn't agree with you more that Spartan is probably the most overvalued stock in the space. I still don't get how such a company can get such a premium, even relative to gems like SGY...I definitely believe they have the "support" of the banks/analysts/big boys, etc. Would not touch it with a pole though.

LRE seems to offer a very nice risk/return profile at these levels. It is almost priced for bankruptcy at this point. I do not like too much the claim that they are "one asset sale away" from a significant recovery, as claimed by another board poster. That is true in theory but there aren't that many deals around and with LRE close to financial distress, I am sure the buyers would press for a hard bargain and LRE would not get $80K per flowing BOE in these conditions. 

The key is the quality of the rocks and of management. Good quality = Good asset sales OR Good production/returns from drilling it. 

Does LRE have good management? Do they have good rocks?

Like SGY, they acquired a lot of assets in 2014 and now face an uphill struggle. Perhaps surprisingly, SGY has now slid down after their nice divestiture...how I see it, I would be happy to buy closer to $1 after an asset sale that takes them away from the red zone...obviously, they might be acquired by then...but when you see the LEG deal, you realize it has really spooked all the hopefuls for takeovers...will still do more D&D before any move. If I found out anything interesting, I will post. GLTA!