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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (12467)	4/7/2015 7:29:34 AM
From: Goose94	Read Replies (1) \| Respond to of 203681

Long Run Exploration (LRE-T) top pick from Josef Schachter on BNN.ca Market Call tonite Easter Monday April 6th @ 1800ET Long Run is a debt levered energy company that produced >31,000boe/d in 2014 with liquids being 43 percent of the total mix. To lower debt in 2015 they will spend only 50 percent of cash flow and use the other $100M of cash flow to pay down against the debt load of $612M at year end 2014. In addition they have a number of asset packages out for sale 6-7,000 boe/d total and if just half sells they should be able to knock debt down by another $100M in 2015. This should then bring exit debt/cash flow below 2x and remove the debt burden worries. Book Value at year end 2014 was $3.70 a share and cash flow in 2015 should be >70 cents per share on average volumes of 32,000 boe/d. Our 12 month stock price target is $3.50 a share. We note that in early 2014 the stock traded above $6 a share.

To: Goose94 who wrote (12467)	4/7/2015 7:31:40 AM
From: Goose94	Respond to of 203681

Josef Schachter Oil outlook.. The energy sector still has downside risk as the world-wide over production of Crude Oil remains 1.5 million barrels greater than demand and inventory space is rapidly filling. Last week the U.S. took 4.8 million barrels of the excess and now stands at 91.4 million barrels ahead of the prior year or 24 percent above normal inventories. In the key storage area of Cushing inventories rose on the week by 2.6 million barrels and now sits at 58.9 million barrels with effective capacity at 63 to 65 million barrels, or 2-3 weeks from being full. We expect that the next month or two will show that there is no more place to store the excess production and that the price of oil will fall to the point or price level that will shut in high cost non-OPEC oil. This clearing price will have to be over U.S. $40 billion to start shutting in high cost heavy oil and stripper oil across the world. Our expectation is that over the next month or so WTI will fall to the $32 to 36 level and stocks will retreat as well. A climate of fear should occur and the long oil speculators should exit their positions and this liquidation should create the market lows for energy prices and the stocks, as it did in March 2009. This would set up one of the best buying opportunities that one will see for the sector. Investors should get their buy lists ready so to be ready to move as the climactic action unfolds.