Lightstream Resources Ltd. LSTMF

RE:Uptrend

[Ranger56]

Doc, I gotta correct you. There were several fundamental drivers causing the share price to rise. First of all they made one very good move to get their sustainability ratio back to 100% and this became clear around the March/April time frame. This simply means their cash flow now able to cover their financial obligations .. dividend, Capx, Interest on debt etc. Note that in 2012 this ratio was at 174% and not able to cover with cash flow. They also came out with an asset sale and debt reduction plan. All this was well received by the market. They also began to deliver and exceed expectations on asset sales. Lets not forget that the oil price rallied from $91 in Jan peaking out at $107 in late June. All of this gave good reason for the share price to rise. 
Now why the very sharp fall. Turns out the share price peaked at about $9 around the same time the oil price peaked in late June. The oil price declined back to as low as $92 in August. With no growth outlook due to an asset sale and debt reduction focus, in a declining oil price environment, what is needed to maintain traction in the share price is good and improving performance (in comparison with peers) in operating and finding/development efficiencies and costs. The market is telling you their performance is not good enough. Now its a guessing game... how much of a discount to NAV is the market comfortable with until there is evidence that their performance improves. How low is low enough to take the risk. Also if the oil price firms up, naturally that will help.