Lightstream Resources Ltd. LSTMF

RE:RE:RE:Number 1 short on market call

[boarderex86]

oilman53 wrote: Its not like that stock was a star performer when oil prices were high!  The high prices were masking the stunning incompetence of management

The stock price speaks for itself but this the market is anti-LTS specifically because of the leveraged business model, and to a lesser degree production issues. Leverage was a high risk strategy and did not pay off. Management deserve criticism, but hindsight is always 20/20. The only positive on the debt situation is that they had the foresight to manage maturities and there are no immediate problems with renewals. If oil prices recover soon, we should see the opposite side leverage work in favor of investors. If oil prices have not recovered by early 2016, we will see a covenant breach on the LOC and the company will need to liquidate assets. I am long LTS but I feel that is as close to an impartial view as you will get on this company. I am currently holding my stock and would only start to add again if I saw a realistic plan to deal with the possible breach. At this point in time, I think the Bakken sale strategy is a long shot. The list of buyers is just too short.