John Stephenson Lightstream Resources LTS-T COMMENT May 28, 2010

Stay away. Lots of debt on the balance sheet. The dividend was cut.

Earnings have vanished and are expected to be minus $0.72 in the coming year. The quality of its balance sheet is pretty good, so it looks to have some defensive firepower. Trading at an 80% discount to BV. If you own, put it away and cross your fingers. Very cheap.

The short term risk is to the downside with the whole sector. You want to be buying into the sector on pullbacks, however. He tunes it out when a stock is in the $1 range. It means there are some kind of problems. It is down 90%.

(Market Call Minute.) Take your tax loss. In his opinion there is zero equity value in this company.

(A Top Pick Jan 2/15. Up 80.08%.) *SHORT*. A company that has been really struggling for some time. Balance sheet issues. He still likes this as a Short.

(A Top Pick Jan 2/15. Up 82.11%.) *SHORT* The whole Short thesis has been a positive one. He still has a tiny bit left, but has closed essentially 99% of his Short.

(A Top Pick Feb11/15. Up 75.52%.) *Short* Has a lot of problems and will probably tumble another $0.30 towards zero. This was a stock that was very much linked to this whole energy weakness. He has bought back in much of his position, so doesn’t hold very much anymore.

(Market Call Minute.) This is a terminal company with zero equity value and you should blow this out and move on.

He would sell this and take a tax loss, and take your money and put it into almost any other name. This company has no equity value in his opinion.

(Market Call Minute.) An over levered balance sheet, and he has concerns the stock could go to zero.