LFD - Longford Energy - Page 3
The LFD rally will continue.
The pending Seismic report and drilling nnews from Vast.
Major interest in LFD by Soros's Quantum Fund; Sprott in and others and continuance of retail investors seeing the potential here. Volumes have increased steadily in the past month, leveled off but increasing nevertheless.
Soros holds a significant amount of warrants to purchase shares at 65 cents exerciseable within the next 6 months.
Other warrants held at .75 are due by this July.
LFD needs the stock to rally since the warrants at 65 cents and 75 cents will bring in significant funds to pay for drilling costs and Q4-2011 production facilities. Dilution risk may be minimized if LFD gets production happening fast.
Oil is a resource that will be in demand and price is remaining good especially if LFD connects in a low cost production area.
Geo-political: LFD's play is in Iraq, not the stabalist place but the Arab countries are in the cusp of change driven by the people which can create uncertainties but also with change comes great opportunities. The government representatives on this play hold a large interest and want to do things different from the past Dictators who sold off sovereign resource assets without providing a equitable share to the people so we may see some positive developments here; however, the risk is still high from the geopolitical side.
Psychological: Not many analysts use this measurement but in a Fear Based system, it is a must to use this measurement factor. Oil is required for most economies and despite the push towards Green Energy, oil is cheap in the Middle east and will remain a part of the economy as we see BRICS especially China ramp up its growing middle class needs. A Canadian firm working with Iraq government officials to develop a resource that Iraq people can share and use to build the infrastructure that was destroyed by the old Fear Based Economy absentee corpocrates will propel LFD to the forefront. People and investors are looking for Corporate Social Responsibility and LFD has a chance to brand itself as a good CSR global citizen. Add that Soros and Sprott are in and people follow the money but they want to follow good money.
Availability of Drill equipment: The equipment, rigs and personnel are not far away.
Feasibility: Seismic results will assist, old data and fact that oil is in the ground mean an expensive drill program that could be financed by warrants being exercised means when drill turns, hype will be on driving SP up but it is the results of the drilling that will propel this stock. I see the SP rising on announcement of drilling, on spud date and shortly before results of drilling are released. Will set a reasonable trailing stop on much of my position when this happens.
Timing: The next 8 months will be very interesting for LFD. The price may rally towards .75 as we go into the second quarter of 2011. If warrants are exercised, financing for the drill program and announcement of it will propel the SP IMO over $1.00
But as always do your own DD. I am continuing to accumulate at current prices and wish you all the best in health, soul-wealth and happiness.
LFD still on of my fav picks for 2011. LFD has to get Warrants exercised, release seismic results and confirm a drill program.
I anticipate that:
1. Seismic report comes out, followed by:
2. Announcement of pending drill program;
3. Exercise of Warrants
If my anticipation is write, I project LFD will go to .75 and once drilling starts who knows how high it may climb. If they connect, it will rocket up so from its current range of .39-.44, this is a great prospective buy IMO....but do your own DD cause everything in life has its share of risk and reward and so many factors have to be considered here...Glad I got in when it skidded into the .20s.
Keep on rocking in a structured world and pick with intelligence based on your risk tolerance level.