Lightstream Resources Ltd. LSTMF

Slide in Price

[galaxyr]

No one loves to see their money disappear.  Me included.  Bought 5000 at $23 sold 5000 at $19.  Lost $20,000, was chasing the 8 cent dividend and got burned on the sell off after 3rd quarter results disappointed.

The company has potential and was held back on bpd by bad weather for 3 quarters.  Now the Bakken is in the middle of a deep freeze, high winds and snow and its not even December.  They may continue to have problems with getting the oil online and drilling.  I was also disappointed with the bpd with the new cardium wells.

My biggest problem was looking at the share buy back for the week ending November 19th and Petrobakken has reduced the buy back to a minimal 5000 shares a day and a company insiders sold approx 50,000 shares between $19-21.

When a company insider is selling off at a low price, it is time for me to sell.  Regardless of the 8cent dividend.  It also appears that they are running tight on the credit (cashflow) and that shows when the share buyback is reduced to only 5000 shares a day from 20,000

Looking to jump back in to make my money back, but I need to see the weather change for the positive or some positive news to come out.  The upside is that the price of oil is holding above $82, the otherside of the coin is that natural gas is holding at around $4 and is well off the high of $6 this time last year.  Netback should improve based on oil price, but they are limited as they seem to be producing less than 40,000 bpd.  During the last 3 quarters the production has gone down by about 5000bpd and I expect that the 4th and 1st quarter (spring break up) won't be much better.

Anyway just my thoughts.  Hope to jump back in to make my money back during the next 5 months.