Longview Oil Corp LGVWF

failing to react

[Nawaralsaadi]

Longview’s stock price has not responded to higher oil prices, higher natural gas prices, a lower Canadian dollar and higher capex in 2014. Each one of those factors is a positive cash flow factor. The stock failing to react to those positive developments and actually declining has further widened the undervaluation gap.    

It is clear that only a resolution to the Advantage overhang will unlock the value of the company; considering how low the stock price is, a secondary offering by Advantage seems fully out of the question unless Advantage is planning to price its shares at an all time low.

Longview’s management could try to reverse the company fortunes by delivering with strong capex execution during 2014; but should the stock price continue to lag, a more radical solution should be envisaged such as a total liquidation of the company, a merger or finding a strategic buyer for that 45% Advantage stake.    

Regards,
Nawar

[hawkowl1]

Short position actually growing.Company has to deliver in 2014 or put the company up for sale. Institutions not likely to get involved due to a large majority shareholder and tight public float. It is an attractive asset for the same Chinese company that purchased Novus. Long life oily assets and take over price would likely be under the minimum required for foreign review.

[terroir]

I am surprised that they have not been able to find a pension fund or even CPP to take out the Advantage stake. Only a couple of scenarios come to mind, firstly, they are holding this strategy in their back pocket pending results of the strategic review / data room process. This makes sense as they do not know what value interested buyers might put on the LNV shares and dividend cash flow. the

[StockAudit]

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