Registered: Jul 2009
08-26-12 06:56 PM
Lone Pine Resources is a 2011 IPO that's been annihilated.
I like to follow IPOs because when they break, they really break. There is no support below and every holder has a loss, so selling can be extreme. That appears to be the case here. Here's how it adds up, roughly:
$600mm of easily valued oil producing assets
+ Zero to $400mm of nat gas acreage in Alberta and Quebec
- $388mm debt
= $200mm - $600mm of value/85mm shares
In other words, this is conservatively worth at least $2.50. Stock is down at $1.18, could be a double in a few weeks as they sell off some acreage and reduce the debt.