peter, do you want to know why?, page-32

A big part of the current problem has little to do with management and much to do with industry concerns. Other than the fact that any company that isnt paying 10% dividend is being massacred there's concern for what the enormous shale gas development in the US and in the future in other countries will mean for alternatives such as coal, nuclear (already in doldrums post Fukushima) and related energy sectors.

The market is now betting that gas-to-liquids and UGC will be unviable in the face of plunging gas prices. Heck, even coal the cheapest of all energy materials is getting a beating. I think the market is correct, in which case LNC will lose money on UGC.

On the other hand, LNC could well make good profits on its oil (but probably not gas) assets in the US and shale development in Oz though the field is getting crowded. Even here it isnt all roses since oil price is going to be depressed from the EU, US economic stagnation and competition from gas.

There are more dynamics operating than an incompetent manager or two.