All LFD investors on SAME PAGE!!!!Hello Everyone,
In reading most of the posts of late, it appears that most investors of LFD are all on the same page, expecting some type of rally!!!!
Good40 turned bullish. Kurd30 turned bullish. HHOC has refrained from comments. No one is contesting maysteeler23 messages. Lack of negativity.
One can only assume that most of the previous negativity with the moaning and groaming on price was due to the fact that the 4 brokerage houses whom participated in the present PP were not able to get shares. I would add that most likely Soros wanted more himself.
Management did what it had to, which was to give candy to everyone.
The biggest issue was the PSC contracts. This appears to have been solved since companies are getting paid as we speak.
LFD best estimate states that there is 1 billion barrels of oil in place on its land. This is best estimate which means odds of getting it are 50%.
From a valuation point of view, $ 32 million for a company that is about to drill in 45 days is truly peanuts.
Unless if I am missing something, the stock market BUYS ON RUMOUR and SELLS ON FACT.
The market gives a $ 5 per barrel of oil in place as a standard valuation for a 40% share. If LFD hits anywhere close to 1 billion barrels of oil in place, you are looking at a $ 5 billion net present asset value.
If we take $ 5 billion divide by 250 million shares o/s, you get a $ 20 per share stock price. I am optimistic and believe they will hit closer to their high end of 4 billion barrels of oil, which will rival Kirkuk land. This will place an $80 per share stock price on LFD.
At speculation value, which is now, given the historical 5,000 barrels of oil discovered, one should value LFD in similar ballpart as SNM which published 6,000 barrels of oil per day at $ 600 million. This means that just in this first speculation phase, which is now until logging results confirm the 5,000 barrels of oil per day, you are looking at a stock price of $ 2.50 per share.
For new investors, this is a 1000% price increase from this level.
No risk, no possible reward!!!!
JMHO