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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (44031)8/22/2011 1:05:38 AM
From: Spekulatius1 Recommendation  Read Replies (1) of 78476
 
re LEI - but you need to account for the dilution due to the ongoing operating losses. They increase their sharecount by a couple of million shares each quarter. Now they have only 700k$ left, so it looks like another "ATM offering" is due. They are asset rich but cash and cash flow poor - a combination that does not work well in the current market.

In addition, I believe you may be making a mistake to double count assets, if you add the flowing barrel value to the land value, since they are the same property. At the very least, you are counting 2012 flow rates but do not count the cost to develop these properties, which I think is going to be significant.

Based on the prevailing land prices, you have probably enough of a safety margin to account for the factors mentioned above, assuming that management would do the right thing for shareholders (which may be to sell out if the shareprice goes too low to allow for accreditive financing using secondaries.
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