Lightstream Resources Ltd. LSTMF

RE:RE:RE:RE:RE:Friday&Tuesday

[Ranger56]

Pan, Nice to see your numbers, but this argument only works if cash flow covers their obligations.. debt servicing, dividend, and capx. This was the case when oil was at $105. However at $80 oil , if this is no longer the reality..this calculation is thrown out and irrelevant.  And if you think assets are worth anything to shareholders when they start to going down, think again, as when they have that day of reckoning over their debt and going concern etc, what value they can salvage from assets is given to the debt holders with nothing left for shareholders or very little in the case of a dilutive restructuring to resolve debt issues. The calculation you should look at is==> at 80$ oil, does their cash flow cover their obligations and sustainable. I do not have this calculation at the moment, but after they report, should have a little more clarity on this.