Szaba, as some have said here, LNC's financial stability has been under question with the US oil production falling below expectations in the March qtr this year. This was a big negative for the Company overall and, in my view, contributed to the recent S/P fall.
This announcement today, particularly the reference of more of the same to come, reverses that negative sentiment. Hence the large rise (26%) in the S/P.
If LNC can make similar announcements around 30 Aug, 15 Oct and at AGM on 29 Nov (ie every 6 wks), I'm sure that the S/P will double to $3.50 min. Then we have 4 or 5 other announcements that could drive the S/P much higher.
LNC Price at posting:
$1.74 Sentiment: LT Buy Disclosure: Held
