GREY:WFREF - Post by User
Comment by
99999goldon Dec 16, 2014 11:21am
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Post# 23235584
RE:A Step in the Right Direction
RE:A Step in the Right DirectionILUVDIVIDENDS wrote: Challenging times demand leadership and tough decisions. LRE has acted albeit too late. The dividend cut was a given considering the circumstances. I would have expected a 75% cut or its elimination altogether. Their oil price assumption has a high probability of being completely out to lunch. This market will reward tenacious survivors with renewed life, and bury the weak. I hope that LRE is not part of the latter group.
they are out to lunch with the oil price assumption, the short term trump card is the hedge then after that the hedging program ends I see the stock selling off - even if they do up a new hedging program they will not get 91, likely be 65-70
the real question is how long will oil be at these levels.
so for now at least for the next few months, it's business as usual. I'd take every opportunity to sell at every uptick over the coming weeks and months before that hedging program ends.