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The transformation of LNC's balance sheet from 30 Jun 2011 to 30 Dec 2011 was nothing short of breath-taking.Cash reduced from $310m to $32m. Debt increased from $2m to $127m. All these were turned into $358m Oil and Gas assets. Given the timing of these acquisitions, the last financial report makes it quite difficult to analyse their returns. The HY report only showed $19m revenue and a negative $48m operating result.Along the way, LNC changed from an undervalued asset play to something that I have no idea how to value. Their 1 year share price chart suggests to me, however, that the buyback has been largely a waste of money.
The transformation of LNC's balance sheet from 30 Jun 2011 to 30 Dec 2011 was nothing short of breath-taking.
Cash reduced from $310m to $32m. Debt increased from $2m to $127m. All these were turned into $358m Oil and Gas assets. Given the timing of these acquisitions, the last financial report makes it quite difficult to analyse their returns. The HY report only showed $19m revenue and a negative $48m operating result.
Along the way, LNC changed from an undervalued asset play to something that I have no idea how to value. Their 1 year share price chart suggests to me, however, that the buyback has been largely a waste of money.
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