What is shocking is that they allow Iran to export but they still have a ban on US crude!!!!
The question is how much of this oil was already sold abroad in the black market? It will take years for Iran oil production to ramp up. But it is definitely one more negative.
I think the issue is the following, almost no firm is making a profit at $50 oil (in NA). If that is the case, the massive increase in oil from NA (4Mboe/d) in the last three years will simply revert back down, at least to some degree...until prices move back up...I am buying now more as the rebound will eventually come. I am not buying LSTMF though as I fear they will could go bankrupt before a full rebound in oil markets (or sell Bakken at fire sale prices)...GLTA!
John Kerry wants his Nobel Peace Prize at any price, so he sold out and made sure Iran could sell their Oil freely. We won't see $70 Oil for another year now.
It survives to see another day...I think we have hit real bearish tones on the oil market. The "oversupply" of oil is exaggerated and will not last long. These low prices will entice significantly higher demand...I think LTS will survive...but prices need to go back up to $70 or so; then it can sell itself (or the Bakken) for a "decent" price. I am hoping to recover 20% of my investment. Right now down 90%...but I do not want to average down. Too risky. Focusing on top players like SGY.
Pretty neat bond swap by Wright with Apollo to reduce debt, interest expense and infuse cash to LTS. Evidently, Apollo bought alot of Lightstream's debt [at a discount] and then made a deal at less than face value to exchange that debt for a lessor amount, but more interest and for an earlier maturity. The other debt holders were pushed down the ladder as the new debt is secured by LTS assets. And hopefully LTS survives................... Ed
Basically pricing bankruptcy at this point in time...if they avoid it, it will be a multi-bagger...if they cannot avoid it, we will lose the little that remains. Either way, I am not selling. GLTA!
It lost almost 90% in the last year...what a disaster...but if it survives this crises, then this one is a multi-bagger. It is Russian roulette...OPEC meeting on Friday will not add anything new (except more oil)...I expect no change in the quota but that will put a bearish tone to oil and gas stocks in my mind. I am loading the gun but waiting for potentially better opportunities in the sector.
The high high leveraged Canadian oil firms all tanked massively at the end of the trading day. Obviously, LTS (or LSTMF in the US) was one of them...
The question is: Is this the moment to buy?
At a market cap of $200M, it seems the market is putting more and more weight towards a BK or fire sale solution...imagine what would happen if they manage to sell their Bakken assets for $1.5M...the stock would triple overnight...obviously, that scenario is less likely after CPG bought LEG for small change...but still, it is interesting to see how little faith the market has on this firm.
We know the debt problems, we know the issues with poor management...but at these price levels, it seems it is almost worth a punt.
Finally got their bank credit line renewed. Debt covenants expanded but tightening of the credit line.
Banks are finally reigning in on their disastrous drilling. Now it is time for an acquirer to put us all out of our misery.
Still holding but not wanting to average down from here. GLTA!
Terrible down day for E&P except for LSTMF which continued to rise in share price. There must the belief that there is a deal in the making or maybe it is the hope of deal. I just wonder how much it may go up before it stops for whatever reason.
It is typically a sobering experience...at least in the last two years, with the firm's assets dwindling and not one good quarter to feed on.
I look forward to seeing the results of the proxy vote. I truly hope the board and management get a clear message from shareholders that it is not OK to destroy 95% of shareholder value since IPO without anyone losing its jobs. Worse, their pay package was insanely high yet again...based on what? Vaguely stated performance metrics...let's recap the "operational performance"...netbacks have dropped to $20 this quarter. That is beyond awful...Swan Hills has been a debacle, at least that is how they have portrayed it...no more drilling there until 2016...basically no more drilling for the rest of the year. The firm has good assets, and those have been and continue to be destroyed by management.
They do not want to sell, they want to sell just the crown jewels (Bakken) and be left with the Cardium to become a low debt high growth story. What will be there salaries then? No shame...
Still holding given that a deal could likely create a double from here but not holding my breath and will take advantage of any deals to exit this disastrously run firm. The risk/reward profile is much more interesting at these low low levels, but do not be fooled, this management will not create value. GLTA!