TD commentsFrom my waterhouse notes:
TD Investment Conclusion
We are maintaining our BUY recommendation but reducing our target price
to $4.50 (from $5.00). We do not believe that the current operating statusquo
is sufficient and encourage management to look at alternatives that
would unlock value across an asset base which offers inherent value beyond
the current share price. The going concern business can be characterized as a
high netback Cardium and Bakken producer; however operational execution
remains our primary concern. This simple point is the basis of our
investment case and underscores our view that the underlying assets are
worth much more than the current market price indicates. We believe
Lightstream provides a compelling risk/reward value proposition relative to
the current share price for the right investor. Despite the dramatic downward
move in oil prices, we do not expect the company to exceed any of its debt
covenants (see Exhibit 3). To help drive incremental value, Lightstream could
become a potential takeout candidate, attract aggressive Private Equity types,
or implement a strategic restructuring plan.