I am beginning to think Lightstream is being hurt by wright's ongoing leadership of Petrobank. That is a failing company with failing technology where everything happens way to slow. Hard for people to get the idea that he is fast nimble operator with one hat on and can't make it happen with the other hat on. If I was on LTS board I would insist he leave Petrobank to others. Or walk away from Lightstream. I don't think one can be a highly successful executive and a failing executive at the same time. Maybe serially (one can learn from experience), but not at the same time.
You may have a valid point but the big concern with most of the junior Canadian producers with a large debt load is that the capital markets have tightened to a point where relatively healthy companies are being forced to dramatically cut costs in order to stay afloat. Access to capital is tough now and going to get much tougher going forward. What capital that is available is priced too high. This is why you will be very hard pressed to find any Junior Canadian producers with a significant debt load and a positive stock price chart. So this capital freeze problem is well known and the reason LTS and just about every Junior Producer is being selling a huge discounts. I suspect at some point, the larger producers will come in and start buying many of these companies up at bargain prices.
You hit the nail on the head. Too much debt. Why would a larger company purchase this company when they can purchase Peto, Baytex or Long Run, all with half the debt level of Lightstream . The balance sheet of those three Canadian producers is far superior to this one. The debt load here is a major negative and why the stock has been in perpetual decline for 5 years.
I'm sure that is part of it. And it is much harder to sell off non-core assets and get fair value. They are lucky the did the sask sale in 2012. They have 300 million indrawn on their covenant based 1.4 billion revolver that extends through 2016, so they don't have immediate liquidity problems. And they will be cash flow neutral rest of the year.