Don Short
Lightstream Resources
LTS-T
COMMENT
Sep 22, 2010
Great job of assembling oil assets. Main focus was Bakken. Did a terrific job of growing organically with an aggressive drilling program but aggressive drilling programs give you a very high decline rate. Some renewed interest in the company now. Moved into the Cardium via a number of relatively expensive acquisitions that are starting to show some good success.
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%.
(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.