Lightstream Resources Ltd. LSTMF

RE:RE:RBC lowers target price

[JohnDD]

Al42,

Lightstream proforma debt is $1.5 billion. Here is the break up  value I come up with using lower production levels but higher valuation that what you assumed. 

If we assume the company sold off it's assets in individual packages much like they did recently, I think $110k/boed is a reasonable valuation to use. To be conservative, I would use 38k boed per day.

Enterprise value= 38k boed*$110k/boed = $4,180k

Share price = 4,180 - 1,500 = $2,680 / 200 million shares = $13.40/share.

This is why I have been buying at these low prices of late - as long as one can be really really patient, I think this is a great long term buying opportunity. I am not blind to the execution problems, but as Cardboard1 suggested this is fixable.

I believe the RBC analyst simply comes up with a fudge factor to better line up with the current share price.