Long Run Explor Ltd Ord WFREF

RE:RE:The Absolute Lack of Fundamental Legs

[99999gold]

johnathamilton wrote:
Here are the key paragraphs from the Seeking Alpha article:

"After all, how can the investors weather this temporary storm and benefit from this oil price shock? Well, big fortunes will be made to those with the patience and foresight to pick right and hold tight. Just pick quality oil stocks with low key metrics (i.e. EV/EBITDA, EV/Production, EV/Reserves), sit tight, and you are going to do very well given that the strong players will remain and the weak ones will vanish.

For instance, stay far from the heavily indebted companies with a high Net Debt to EBITDA ratio, because many highly leveraged U.S. shale producers will go broke over the next couple of years. The rising tide will not lift all boats. Even if WTI jumps at $85/bbl tomorrow, several U.S. shale oil producers will not avoid bankruptcy while others will be sold for pennies on the dollar. Beggars cannot be choosers."

for those of you who are more gifted with calculating financial ratios - where does LRE stand?

Cheers!
John

stay afar from heavily indebted companies is THE key statement, big money are going to those with at best 1x debt to cash flow first. It's all about cash flow these days with commodity companies.

second you have to be buying (in multiple blocks) at these levels if you believe that long run will succeed, most are likely afraid to but if you have conviction and belief that it will (if you continue to ignore the debt levels) then buy and put new money in it, holding and waiting to return to 3-5-7 levels will not get you your money back but if it hit those levels you'd make out and will not have to work again - just need to have a pair to hold it up until then...