Energy Prospectus

Lonestar Resources (LONE) started trading on the NASDAQ exchange July 5. It was up 12% this morning.

Looking good!

It will take awhile, but I think a lot more fund managers will now take a hard look at LONE. My valuation is $11.80 for LONE and there is upside to that number.

Frank Bracken, Lonestar's CEO, is going to be the speaker at our Houston luncheon on July 26.

Lonestar's operating cash flow per share:
2015 Actual = $3.85
2016 Forecast = $2.30
2017 Forecast = $3.60

Lonestar's daily production:
2014 Actual = 4,480 Boe per day
2015 Actual = 6,401 Boe per day
2016 Forecast = 6,751 Boe per day
2017 Forecast = 8,700 Boe per day

Now trading at $8.9 !!!!
Sweet.

I rate it a STRONG BUY up to $10.00. Lots of investors are looking at Lonestar for the first time. The real buying has not even started.

Companies like this should be trading at 6X to 10X operating cash flow per share.

but, no volume--one small trade could take it down to 6 again

That works both ways. I am surprised that there has not been more volume.

My shares are going through a conversion process to the new NASDAQ listing. Should be complete in 24 hours. I am not cashing out or trading until the account is settled. Probably many others in the same boat.

My shares in a Merrill Lynch account are still the original amount of LNREF (no response to the reverse split/new symbol). In another account with a different broker, the shares are LONE, but they have given me twice the number of old shares, instead of one-half the number of old shares (the intended 1 for 2 reverse split). I talked with Chase Booth at Lonestar and he said they are working on the problem.

At least now the trading is recognizing the reverse split.

Hopefully, things will be straightened out by the opening bell tomorrow.

Today's trading is simply reflecting the 2:1 reverse split that is effective as of today. Charts do not yet reflect the split.