Lightstream Resources Ltd. LSTMF

to buy or not to buy

[islander01]

as the price falls this gets more interesting….spoke to ir….on the surface the company looks good….some of the numbers tossed around were a cf of 800m vs. dev cost of 900m and then add in interest charges and the divie….result is the need for substantial borrowing every year….not so good…I expressed the view that it would be better to cut the divie as buying in and then having it cut is a real risk…they say no plans to cut it now but what else would they say…the real key seems to me the price of oil ….at 95 they can make it work imo but  as it drops the borrowings rise… it seems to be a race to get as much production against steep declines before the price falls in the hope that the extra production will compensate for the costs …….while borrowing for growth is normal I see paying the divie from borrowing also as a jump and pushes up debt…rising interest rates not good here…so there is a lot to consider…really need to be bullish on oil to buy pbn….good luck to all