Lightstream Resources Ltd. LSTMF

RE:Seeking Alpha article

[JohnDD]

I think the Seeking Alpha article is right on - I was thinking along the same lines myself.  Under the present management plan, which involves holding on to all the core properties we are unable to grow any of them for at least 2 years.  Our financial position is so weak we can't even buy back any company shares at these record low prices. Based on the 2 year plan to get to improve the balance sheet, the stock price will probably remain low for an extended period.

I think a transformational divestiture of one of the core properties like the Cardium with all its drilling locations and land makes a lot of sense. Selling the Bakken is also a solid alternative.  Selling either one can generate real shareholder value in a timely manner.
Specific benefits I see:

1. Clean up the company’s debt problem almost overnight.
2. Provide the financial strength to start buying back company shares in a big way.
3. Provide the financial strength to grow the core assets we retain. Under the present plan it will take 2 years before the company can even think about growing production again.
4. Most importantly I think the stock price would likely double in a timely manner. Maybe even cause a bit of squeeze on any remaining shorts that haven’t already made off like bandits.  Hats off to the shorts, they clearly made a smart call - they probably scored some serious profits on this one.
5. Reduce the stress on all us shareholders, so we can finally have the option to sell out at something close to breakeven or possibly a small profit.