Not that it really mattered much when my basis was well higher n 35% of garbage is jus less garbage but this is going to file bankruptcy within weeks.. What a waste of a company.. the board is to blame
They need to get through this year and into 2016. if they can do that they survive and it may take 5 years but they can get back to 8 pps.
I think you made a good move. Lenders are owed $1 billion and they do not want to hire lawyers to deal with this in a court so I think they work on giving an extension of time to correct any breach in the loan documents.
There is another way to go and that's batton down the hatches, negotiate with the lenders and ride this thing through. The whole CA oil patch is under share price pressure but that does not equate with the value of the businesses. I bought more shares today. Ed
First, I am long Lightstream and a lot of shares.
I spoke with both the I.R. and the President of the company.
I suggested to both of them that they buy shares at sub $1 per share.
I suggested they cut drilling and use the funds to buy shares.
The response I received is that they needed to drill to cover debt
payments, capex and overhead.
In essence I see them drilling their reserves and selling them in
the $40's during 2015 which takes twice as much energy out of the ground
for the same dollars as in 2014.
The share price would indicate that they do not survive this and people
are dumping to get whatever they can get.
I am holding as I am down a great deal of money but so is the CEO.
I am sure the CEO is trying to find a buyer even though he is not able to
discuss that with the public. The problem is that this is the worst time
to unload the company. I mentioned to management that any hedge fund
could buy up 10% of the shares for pennies at this time without having to
disclose this and then when filing the holding could buy the company for
a song if no competing bids take place. With the price closing in around
50 cents, the company would be lucky to see $2 bucks a share from a
buyer. You just do not see buyers paying 100% over the market price for
shares in acquisitions. At least I do not recall anyone paying 100% over
market for a purchase.
Sad state of affairs.
When it comes to national security, which energy is a major part, I think we need to protect our E&P upstarts, but the 'leaders' do not concur. They do not concur with any policy that is beneficial to the US. I don't know how much longer we can sustain our standard of living with the fools running our country into the ground. Third world, here we come.
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jamisher99 You seem to want to be a non free trader when it comes to globalist oil industry or do you actually think that Big American Oil Co. are not in bed with OPEC? If you think Obama had any hand in how fast the price of oil dropped then you clearly do not understand the oil business. The pipeline or lack of it did not cause the drop nor will finishing it make oil go up like magic.
You are correct that this is not about supply and demand as supply was barely 5% over demand when all this started and oil has corrected over 40% in price. It is true that the price of oil hurts Russia worse than the US and Iran as well but Iran is making money at 50 bucks just as is ALL middle east producers.
Saudi and their Big Oil American partners in the world oil market have declared war on small E&P companies and are out to destroy the shale oil business or send the message that they can repeat the oil price fall anytime they wish.
Why do you support a tarriff on oil and not all the other Industries that American Business have sent to Asia?
I will join you in a total return to tariff's and quota's on ALL thing that was once made in America and now are filling the Walmart stores with made in China on them. Good luck finding anyone that will run for president saying they will do that. The GOP is totally sold out on Globalism and has been for years and the Demo party leaders are also Globalist so they will be no help in the white house by either party. Money controls the white house and no GOP is against Globalism and no Demo will be able to find money to run if they come out anti Globalist. Oil is a national defense matter but so is steel and a merchant marine both of which are almost totally gone in the USA today. The EU is storing oil like crazy during this cheap price and once their storage facilities are full the price will start to correct. Big oil will buy out the LSTMF of E&P and control production and location.
opec with obama's help is destroying our E&P capability under the guise of punishing Russia for invading Ukraine, and iran for building a nuc. This could be stopped with a nice tariff on ME oil coming into the states. That could support our local producers. We should tell the sauds that any future sea lane security in their part of the world will be discontinued unless this extortion ceases or they pay for it. We need a pipeline from Canada to further our independence from ME oil. We need a president who cares about the country, and we need that now.
I agree! But if your a bank do you let these bond holders take your money..or do you Bankrupt them
Most of the bakken is in violation. The banks or bond holders have to negotiate or ignore because nothing good will happen if any action is taken at oil in this price range. The question will be who will buy it at what price and it doesn't matter who's asking the question, lighstream or a bank or a bond holder. The answer will be the same. The winners will be the ones with lenders who will work with them.
possibly but the security (o/ng proved, probable, seismic completed etc plus midstream a lot of these firms own) is valuable. If o/ng can just stabilize for a while, more stuff will trade, o/ng people are by nature optimistic and if they can make the numbers work, they will buy.. most of these "investments' are just day trader penny stocks now. sad. I am certainly not adding anything yet. Bea
I think the crash in oil bonds and loans may be like the last sub prime crisis in 2008/2009, only much larger. Maybe there will be some better buying opportunities in a year or two.