GREY:LSTMF - Post by User
Comment by
tcellingon Sep 06, 2014 8:49pm
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Post# 22913178
RE:Still Way Too Much Debt
RE:Still Way Too Much Debtdarkstream wrote:
LTS is not an intermediate oil and gas company. It is strictly a good size junior player and the sooner it realizes it the better. They need to reduce another 750 million in debt and downsize everything associated with it. Myself I would be happy a company producing 20000 with no debt instead of 38000 with 1.5 billion owing.
Not to be harsh but then you are in the wrong stock altogether. For me, LTS is attractive due to its leverage to oil prices. It is the debt that provides this leverage. There are many less leveraged oil companies around this same size out there, if that's your thing.
Personally, I see very little downside risk in crude pricing. Any change in sentiment and a small supply crunch and WTI will be sitting in the $120s. I am expecting just that this winter.