Long Run Explor Ltd Ord WFREF

RE:Long Run vs. Spartan - My take

[wilwal]

The beauty of LRE is that it is highly leveraged on the price of oil.  According to Nuttall, you are looking at a double with $70 oil.  So if you are an oil bull, buy lots of LRE.  It only has to exceed $70 and they can hedge away their profits and do big work on the debt.

This is typical of companies like this.  When cost of production is high or debts are high, they get beaten up and bashed because of their high degree of downside risk in relation to the underlying commodity.  Resource investing 101.

The upside is exhilerating, the downside is fearful.  Fear usually wins and it is winning right now with LRE.   A big oil price increase today should have the bulls out in full force.  Look for short term upside to LRE if oil price holds or increases.  CIBC is going to have to increase their offer to get more stock if the oil price holds.