GREY:LSTMF - Post by User
Comment by
bushhog1on Sep 07, 2015 10:11am
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Post# 24083405
RE:RE:Good report on oil companies sustainability at TD
RE:RE:Good report on oil companies sustainability at TDInteresting, indeed.
Their complex formula spit out LTS as a 1 ( worst in a rating of 5) to survive
if oil remains below $50.00 for a very long period.
I was trying to figure out if their metrics were based on Debt load, but some Companies
with bigger Debt load and small Equity were rated higher.(Debt to Equity)
They said LTS was particularly distressed and has taken several measures to alleviate this,
like cutting dividend, relaxed financial covenants, assets sales.
Again lots of Companies cut dividends and sold assets, etc, but were still rated higher
than LTS.
However LTS was very proactive and if oil will stay under $50. for a long period
(I don't believe this), lots of those higher rated companies will go long before LTS.
Only my opinion.