RE:RE:RE:Just looking at NumbersI agree, it is a bit early to talk about dividends but, here is my 2 cents.
First, it is not true what you are saying. LRE was in the range of $1.10-1.30 while there was dividend paid, even when Oil was around 40. As soon as they removed dividend this crashed to .60s.. and that is the fact, real fact, only fact.. So, with share $60 cents or $1.20? Can they raise more capital with 60cents share or with 1.20 cents share?
There are many funds, big investors, small investors that buy dividend stocks only. Dividend brings the smart money.
companies like LRE will never be out od debt. Never. This is how money is generated, this is how the money is created, having those debts on balance sheets of the banks make banks stronger with more assets on their balance sheets. Bottom line, debt will stay, forever. That includes other Oils, and that's how it is.
So,..when/if oil goes back up a bit more, I would suggest LRE to start buying back their shares and remove those many shares from the market, while they are still cheap., and then after they should start putting dividents back. With a bit of Oil help, that will bring this back to $6 and even more.
This is balancing act. With Dividends, they can raise more capital, with out dividends they can save some money, but less capital (unless they take more debt). It is all about balancing
Take a look at Cardinal Energy. They are still paying dividends, no problem, no interuptions, they were 16, went down to 12 and now is back to 16. Strong capital there.. same share price as before this whole thing started.
LRE has to take this opportunity to cut the fat, become more lean and improve efficiency, that's how they improve their balance sheet, and pay the debt. Are they doing it?
Stop treating those companies like they are some kind of mom and pop shops. The whole system is much bigger and complex and I am sure those CEOs know how to play the game.
Do you realy think shareholders will be so nice and loving toward LRE and just accept share 90 cents unitll they "pay" the debt or whatever...? I dont' think so.