RE: RE: Market Capabout 42million shares out about 18million cash and investments ,about .42 a share
microcap.com
https://www.stockhouse.com/Blogs/ViewBlog.aspx?b=355
articale about lfd
https://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=87651
Longford Energy (LFD.V $0.185)
www.longfordenergyinc.com
Fundamentally this company is very basic - a very small oil company producing about 50 bopd (enough to keep burn rate down). However, it is run by a group from Toronto known for putting strong deals together and the company's mandate is to find a strong international oil & gas play. Their timing was fortunate (lucky) because they raised $20 million at $0.80 when oil was at its peak in the summer. Now they are shopping at the bottom.
What makes this so appealing....
a) Shares Outstanding: 42 million
b) $18 Million Cash (no debt) $0.42/share
Their burn rate is low (about $1/2 million per quarter) and they will remain under pressure to reduce it even more. If a person buys the cash for anything in the $0.17 to $0.19 range, they are paying $0.50 on the dollar. If they land an oil deal that is half decent, the stock should trade close to cash value. That would provide a 100% gain from here.
The benefit to this strategy is that the downside risk is the value placed (by the market) on discounted cash. Even if a person sat on the paper through 2009, it provides a comfort level because they simply bought cash. If LFD finds something really promising that doesn't suck the life (cash) out of them, the upside can be much greater than 100%. However, this conservative approach allows a person to sleep at night - which is very important in this market.
Liquidity is good right now to $0.19. Objective is to tuck away until they find an acquisition target.
hope that helps
vern