RE:RE:picked up a few more wilwal wrote: There are two ways to make money here:
1. LRE is highly leveraged to the price of oil. That is perfectly evident when you see the disproportionate correlation of the stock price to the price of oil. If you want to place a bet on a recovery in oil prices, lots can be made from this level.
2. A bet that the MIE deal will close.
If both events occur, shareholders will do really well from these levels.
#1 is the main reason why i am buying LRE as a contrarian play on OIL...I noticed a few months ago that this stock moves with OIL...
and i read a great Motley Fool article on LRE and I didn't own OIL stocks during this crisis,,so didn't lose anything on OIL...now i am just playing the market,,,lets see what happens
I like that they are doing their best to keep their debt under control and have suspended divi and seem to have become a better run company in this oil downturn...so if is comes back...my bet is this will too
so lets see
most important thing is I AM PATIENT
my only concern is can LRE stay in business until OIL comes back
only time will tell
good luck all