Longview Oil Corp LGVWF

AAV/LNV

[Nawaralsaadi]

Advantage announced last night that the auction date for their strategic review process has elapsed and bids have been submitted and are currently being reviewed by the company and its financial advisors. This seems to indicate that we will have clarity on the future of Advantage in the coming weeks. Should Advantage be acquired by a large company, expect LNV to rally due to the removal of the Advantage overhang and the expectation of a sale in 2014. if Advantage remains independent we could experience a short term dip as the market prices a liquidation of the Advantage stake, however I am firm in my belief that Advantage would opt for a full liquidation/sale or at least a merger of Longview to/with another Western Canadian player in order to monetize its 45% stake in the company. A secondary offering at current prices is highly penalizing to Advantage and practically unworkable in the current environment. Any weakness resulting from developments at AAV should be bought as ultimately LNV true value of at least $7-$8 could be easily realized through a transaction in 2014.  

On a side note, I have a consulted with a number of fellow shareholders and have written a letter to LNV/AAV Chairman on November 21^st detailing a number of ideas to disengage from Advantage, while highlighting the need for clarity on the LNV/AAV relationship in order for LNV to achieve its true potential.

As I have often done with my investments, I will continue to engage with the leadership at LNV to make sure that LNV shareholders interests are protected and that the company is performing as expected, while I don’t perceive any major issues at LNV beyond the AAV question, it is important for shareholders to remain vigilant and engaged in the affairs of the companies they own.

Regards,
Nawar