Long Run Explor Ltd Ord WFREF

market value of LRE

[canne]

at $2.39 / share with 193 million shares outstanding, the present market value of LRE is $ 462.5 million. If barney's numbers are correct and LRE is $716 million in debt, we have a problem and that problem is that the debt is today' reality as is the collapse of oil prices. Lending institutions begin to get nervous when asset values that back the loans drop like they have lately, often these loans are structured so that the lending institution can demand payment when the assets no longer support the loan, banks are only your friend when you make your payments and their azz is protected.
  There are a couple of circumstances here that bear mentioning. Firstly, LRE has a large gas production and the price of gas has not declined, secondly, in my view, the overproduction of oil has been relatively gradual but the oil price collapse has been virtually instantaneous - have the realities of the marketplace really changed so much that a 35% decline in price in 4 months is justified ??? Does 1 million extra barrels a day on a baseline of 30 million justify this response ?? 
We are in a time of economic manipulation by governments and large financial institutions. The degree of intervention these days is unprecedented and the old rules of supply and demand simply do not apply. States like Saudi Arabia can order actions that have no economic justification and are simply politically motivated. 
 Which brings us to a bigger question. If the economy is doing so well, why is the price of virtually every commodity declining?? It used to be that when things were chugging along and the economy was getting better, commodities increased in price.

[theman0]

A true measurement of the Value of the company is not the share price. The Book Value per share is currently $5.10

[canne]

just hold that thought and try to sell your shares for $5.10 ....

[farco]

Think whatever you want to think, especially if you praise the irrational markets to reflect the reality...

[theman0]

Talk about missing the point. Book Value > A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how much the company would have left over in assets if it went out of business immediately With a book Value of $5.10 LRE is Massively undervalued.

[canne]

that book value was when the assets were valued last year, with oil at $100, methinks those asset values have changed. and besides, the reality is an asset is only worth whatever someone is willing to pay for it and that is $2.39/ share at the present time.

[farco]

assets stay the assets, don't blend assets with earnings and cash flow.

[Piperdown]

Which brings us to a bigger question. If the economy is doing so well, why is the price of virtually every commodity declining?? It used to be that when things were chugging along and the economy was getting better, commodities increased in price. You hit the nail on the head. The commodities prices do in fact represent the true state of the economy. The general markets 

[farco]

The share price never reflect the true value of a company.... And the global economy isn't well.