# Two hot topics COS VS LRE



## Fraser19 (Aug 23, 2013)

Hey guys,

I am sorry if this post is a bother, but I feel with these two stocks being discussed in such great volume recently I am interested in how they compare to each other. Reality is both of these companies have a lot of ups to them. 

On one side we have LRE. A company with a lot of promise and potential that is being sold at a dirt cheap price. They have a very high dividend yield right now and with with a fairly small investment it could be set up to drip a few shares a month with a substantial opportunity for significant capital appreciation. 

On the other side we have COS. A stock with a good reputation that also has a very attractive dividend yield. Also at its current price there is quite a bit of room for capital appreciation as well.

Provided there are no major unexpected disclosures both of these stocks should make good headway for returns when the market moves upward. There is so much information the the COS thread and in the LRE thread I am wondering, which stock looks more attractive to you? and why?

I have been following both of these threads very closely, but there isn't a lot of talk about how one compares against the other in relation to medium to long term investing.


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## AltaRed (Jun 8, 2009)

These companies are not in the same business nor the same league nor ballpark. There is no comparison to be made.


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## Butters (Apr 20, 2012)

Hard to compare

Like u said COS is bigger and been around

LRE is half natural gas. Junior company so jumps more whether it be down or up. 

I'm holding a piece of LRE but wouldn't be buying. It will hit $2
Reports tomorrow I think. Let's see how the market reacts. 

Oil will stay low for a year. No rush to buy either.


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## Fraser19 (Aug 23, 2013)

AltaRed said:


> These companies are not in the same business nor the same league nor ballpark. There is no comparison to be made.


While I am aware that they are not in the same business, I feel that they are two stocks that have received a lot of attention recently. I am wondering what other people are thinking when they consider investing in them?
Also if they could only pick one, what would be some of the major factors in the decision? 
The idea is around growth and dividend potential.


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## humble_pie (Jun 7, 2009)

_"People are known by the company they keep."[_

3 companies i am never going to keep, largely because of numerous incoherent cries of enthusiasm by amateur investorlets in their respective threads on here, are COS, lightstream & long run.

never mind that they all probably have excellent, salient features. So do thousands of other appealing companies. The minute i see too many groupies swarming over a stock in neon lights, i'm out.


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## bmoney (Jun 22, 2013)

humble_pie said:


> _"People are known by the company they keep."[_
> 
> 3 companies i am never going to keep, largely because of numerous incoherent cries of enthusiasm by amateur investorlets in their respective threads on here, are COS, lightstream & long run.
> 
> never mind that they all probably have excellent, salient features. So do thousands of other appealing companies. The minute i see too many groupies swarming over a stock in neon lights, i'm out.


Call me a groupie, but I am bullish on energy medium term. Demand is not decreasing, it is infact increasing. Auto sales are up to near record highs in NA and China. Low oil prices will compete with alt energy, this is not good for humanity long term and will push out adoption and further drive demand. The fracking and oil sands energy revolution requires higher prices than in the past, there is a lot of expensive oil at the margin tied up in technology, labour, transportation and refining. Fracking wells have a very different production curve than conventional wells requiring continued reinvestment. Also I have never seem so much pessimism in the energy space, despite what some might think about CMF cheerleaders, we are a minority dare I say contrarian, these stocks certaintly are not rallying.

LRE for me is speculative and they are mostly hedged, with 50% oil and 50% nat gas exposure, their dividend may be questionnable at this price but I think their business is sustainable. COS is pure exposure to oil without any hedging. Low cost of production, recent completion of major capital investmet should drive down costs and increase cash flows and profit, when prices recover (which I believe) so will the stock. Recall the feeling of the 2009 great recession, that's the fear we are seeing in energy right now, and in 6-8 months this could prove to be a buying opportunity. It's to be seen...


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## humble_pie (Jun 7, 2009)

bmoney what unfortunately appears to happen in a swarm is that knowledgeable voices such as yours, along with others in these threads, get smothered out in a stampede.

contrast these cluttered, almost unreadable fad threads with the structure of the ACQ thread. As i recall, this stock was first highlighted by optsyEagle in another forum. Then jungle picked it up & started a thread here in cmf.

ever since, this dedicated thread has featured posts from knowledgeable investors, some with advanced auto sector knowledge, including Ethan & James the racecar driver from ottawa. It was never populated by novices demanding others to advise them on whether to buy ACQ or buy some other company in the same broad general sector but not related.

this high degree of insightful writing made the ACQ thread special. Still makes the ACQ thread special - the story isn't over yet! it's a pleasure to read, even for someone like myself who has never owned the stock.

but a stock thread that gets stampeded looks like a passing fad. I would not spend the time unravelling the messages one by one. it's easier to look elsewhere.

in the oil sector generally, altaRed was one of the first to post that we are drawing ever closer to the era of King Balance Sheet. Whose debt is going to allow which company to survive the coming low oil price crunch? it wasn't so long ago - 2008 i believe - that OIL, once a promising TSX oilco in the north sea, went under when its scottish bank failed. OIL toppled into bankruptcy almost as fast as an ocean-going rig might sink if it were torpedoed.


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## CPA Candidate (Dec 15, 2013)

humble_pie said:


> contrast these cluttered, almost unreadable fad threads


Like some guy babbling about ACQ in a thread about oil stocks, 2 posts in with no relevant contribution to the topic?


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## humble_pie (Jun 7, 2009)

what topic? there's no topic in this particular thread, it's a melee

like i said, a few of these traffic-jam individual stock threads have turned into bedlam, too many novice investors asking should i buy this or should i buy that

candidate you're one who normally does better, why not go over to the oil thread


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## gibor365 (Apr 1, 2011)

are you talking about LRE and COS?! Solid "guys" like SU, CNQ, HSE and US COP, CVX got beaten down !


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## doctrine (Sep 30, 2011)

Until someone stops producing, expect more downside. Oil is heading down until a major player reduces production. It's that simple. And it's going to happen fast. Goldman was predicting $75 WTI in Q1 2015 and some analysts scoffed, and that nearly happened today. Everything is selling off; high debt, low debt, no debt, oil, gas, production only or integrated, even pipelines. Hard to find anything that isn't down at least 20%.

It's not really a stock picker's market anymore. It's 100% linked to the commodity. Everything will do well if oil bounces back, and everything will fall if oil keeps going down. Fundamentals mean little in the short term.

For the record, I think this is as good of an opportunity as you're going to find. There's no way oil stays low for a decade; low oil prices are adding an estimated $1 trillion a year of nearly direct consumer stimulus to the world economy, especially in first world economies, and oil is 10 times more expensive to extract than 20 years ago despite technological advances - even in 'low cost' places. I haven't sold any oil shares, although I haven't added any in the last month. They're so cheap, you don't need to pick a bottom, you can wait for a 20% recovery and still pick up some names at multi-year lows. May as well see how far the rabbit hole goes. Staying diversified though, the ol' telecoms, financials, real estate and consumer oriented companies are doing just fine.


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## Gabs (May 7, 2014)

AltaRed had it right a few weeks ago when he said something along the lines of watch & wait for the bottom of both the stock and oil in general. Then wait for oil (WTI) to firm up and head into the opposite direction. The stock might take time to respond anyway and after doing the research then invest. You won't pick the bottom sure but look at the price chart of the last 3 months of LRE for example and everyone going in thinking they bought in at a great price while the stock price constantly is going down and the dividend payout ratio creeping up. Similar situation with most oil stocks really.


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