Lightstream Resources Ltd. LSTMF

Energy Oil & Gas E&P

"Lightstream Resources Ltd is engaged in the exploration and development of oil and natural gas in Western Canada. Its operating areas include Southeastern Saskatchewan, Central Alberta, and North-Central Alberta."

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Lightstream Resources Ltd. > fair value of LTS shares IS NOT 3 cents

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Comment by boarderex86on Aug 04, 2016 12:35pm

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Post# 25110487

RE:fair value of LTS shares IS NOT 3 cents

This is why the warrants were included in the transaction. Shareholders can retain some upside If the stock moves towards book value. If it does not move up, the the debt owners are still able to cover their investment.

chantal2468 wrote:
its simple math...3 cents times approx 200m shares = $6M (which is 2.25% of equity)

multiply by 44.5 to get total equity of $294 M.

Next,add back $400M debt to get enterprise value of all the assets = $694M

THAT IS NOT the current market value of Lightstream assets at $40 WTI oil.

The current value of the assets is approx $900M ,which implies a share price of about 5 cents.

after consolidation (88 X 5 cents) = $4.40

So if LTS starts trading at $10.00 per share I would expect the share price to drop dramatically if oil price remains at $40.

I would consider buying at $3.00 per share post consolidation IF WRIGHT GETS FIRED.I would NOT buy at any price if he is running the company.Getting burned once by that guy is enough for me.