RE: RE: RE: RE: RE: Results In my opinion, selling LEG in the 5's is the opposite of what you are suppose to do. Buy low, sell high. if you are a trader, maybe sell at $5.7 and hope for $5. Short term investors should likely stay away from LEG. Long term investors - look at Trent's strategy: unlock the 300 MBOE through growth. Watch the First Energy video: he talks about it but not very clear to the average investor. Trent should be more clear on this strategy and why this strategy is in the best interests of investors (in my opinion, lay out a 5 year plan: NAV will go from $9-$10 to $20-30 (alot depends on a variety of factors: oil price, but most important success of water flood).
I don't see $5 - remember that was the low point last summer when the stock market wasn't looking good and especially oils. Some were concerned oil was goind sub $80. That didn't happen and oil is now in the 90's and Edmonton par is only a few bucks south of WTI - the gap has been narrowing.
Study the oil market: transportation and refining issues getting solved. Keystone is got a better than 50/50 chance. Oil is moving by train (I see trains with over 100 oil cars every day going south - it is amazing to see). Also, WTI and Brent will narrow. I expect downward pressure on Brent and the narrowing between WTI and Brent will likely have both closer to $100. This is good for LEG and will provide more free cash flow for management's decision: ramp up growth faster, pay down debt or div.
As for Debt concerns, this will work itself out through growth: think about their cash flow in one or two years from now if growth continues at these rates (2 years: we will be 22500+ BOED: 3 years: 25000 BOED) and if oil is average of $100, then we will see the Debt ratio drop from 2 to sub 1.5.
That was my interpretation of the 5 year plan, although viewers needed to put all the pieces together to figure this out. Sounds like a good business plan and yes, the SP may not keep us happy in the short term, but is a business about "short term" or 'long term" thinking????