Longview Oil Corp LGVWF

RE: RE: RE: Anyone understand this?

[konzelmann]

Market probably doesn't like the payout ratio, which is a bit over 100% based on my math.  Also leery of how production has decreased in the past year.  They probably should be cutting the dividend and increasing capex a bit IMO.

I'd be a buyer if they cut the dividend in half and announced a small increase to capex with an improved 2013 exit target production of 6500-7000 boepd.  Stock would probably tank that day, get in as cheap as possible because you'd still be getting over 6% dividend but with increased production and increased cashflow that would hopefully support small dividend increases in the future.

I don't like to see debt increasing and production decreasing just to sustain a 13% dividend.