Hello, Gary. Here's my opinion, FWIW. I'll start by saying that I am probably he who knows least here. Suggest if you are interested in Lor you follow both the Lor and G* threads if you don't already as most of the discussion seems to get directed to the other thread, being that, yes, Lor is very tightly tied to G* with ownership in the 40%+ range and pledged assets.
<<If GSTRF goes belly up (hypothetical) will LOR tank>>
I think "yes"; temporarily anyway. I think the psychology of a G* bust would override any valuation rationale.
<<is it built into current stock price?>>
I think "yes" on a value of the parts basis but the perception is that Lor is G* so the stock would still tank, IMO, considering the anchor effect G* has had on Lor to-date.
<<can LOR climb without GSTRF climbing?>>
Simplistically, I think "it's unlikely".
I bought Lor because I believe that G* will be successful, Gary. I also like the underlying (non-G*) core business at Lor as a safety net should G* be a royal bust. I like participating in G* via Lor for the cushion of the other lines of business. Others prefer the zing of the pure play via Gstrf. However, if I thought G* was going to fizzle out I would not be in Lor at this point. And there ain't no denyin' that I'm underwater on my Lor at this point.
I won't pretend that I know anywhere near what many on the Lor and G* threads know, so I again encourage you to read both threads, if you aren't already. You'll find some good analyses about the sum of the parts value of Lor's segments and the value x-G*. Still, for the foreseeable future, I think Lor and G* will be tied at the hip.
From my view, it's a high risk position and I wouldn't put my life savings into it. Still, the potential is too inviting for me not to participate. It's a fascinating business.
Good luck!
.........VVVVVVVVVVVV |
