It all depends on the news in the quarterly. The last two have been shockers.
The December 2012 one went from $2.43 to $2.04 in 5 days before recovering and then falling again.
The March 2013 one went from $1.92 to $0.80 over a two month period before recovering.
My view is that the oil production will be below last quarter and the net cash burn will be approx $66M (exluding the bond raising). The New oil well news is already factored into the current SP so unless there is really good news about a shale deal or Alaska analysis of the core samples I see the SP going down.
The good news is I expect next quarters forecast cash burn to be a lot lower at around $5M as no interest is due in the quarter. The Bad news is the following quarter will have net Cash burn of around $60M again as Interest will be due and Alaska drilling will start again.
Once again if the report comes out early on wed it will be good, if its late it will be bad, that's how LNC works.
LNC Price at posting:
$1.71 Sentiment: None Disclosure: Not Held
