Forest Oil Corp (NYSE:FST)

Forest Oil Corp (FST) just completed the sale of the remaining equity holding in their spin-off 70,000,000 shares of Lone Pine Resources (LPR). As part of this spin-off Forest Oil was able to unload $2B in debt on to the newly formed LPR, as well as raising $178M in cash in the IPO that it held in Q2 of this year. The company split into two with the Canadian Assets being taken over by LPR and the US assets being retained by FST.

After this split I think that FST is in the better place, as it has reduced its debt in the process and increased its cash position. FST will no doubt take advantage of this position to expand its US operations and develop its current oil finds further. I expect this to effect revenues in 2012 and 2013 significantly, which I don't think are fully priced into the stock.

Good buy anywhere below $10/share.

value

Timing is everything and you have to love down grades - to 40+ plus we go - be patient. relax and "wait".

looks like winner!

shale gas

high beta NG play, solid leadership from what I can see.

Upside/downside risk in this stock is very favorable

Allen

Trading at 4.5x tangible book with too much debt and severely negative free cash flow. They just finished some gigantic writedowns - more than the current market cap in size. I.e. the CFO basically said: "Hi investors, you know that balance sheet we just published a couple of months ago? You know that book value didn't mean anything, right? We were just pulling your chain!" Over the long term, the market always punishes companies with questionable accounting standards and weak balance sheets.

fransgeraedts

bull

Oil/Gas have nowhere to go but up form here, I believe we've seen the bottom, and now we wait.

expensive.

Domestic exploration and production picking up. Natural gas futures up 30% - and oil futures up 40% - in 2Q 2008 alone. Strong energy play with lots of room to grow, so long as the company manages risks aggressively. Outperform 3Y.

http://en.wikipedia.org/wiki/Image:EIA2007_f4.jpg

------------Reuters, 09 July 2008 --------

"During the quarter that closed June 30, crude oil futures climbed nearly 40 percent, while natural gas futures rose nearly 30 percent. Those gains helped to fatten energy companies' bottom lines.

""Higher oil prices have led to higher earnings for many companies," Tim Gaumer, director of fundamental research for StarMine in San Francisco, said. "For the current quarter, I see positive earnings revisions in only one sector, and that's energy.""

http://www.reuters.com/article/GCA-Oil/idUSN0942856620080709

Solid Company. Great Management. Historically stable.

cmon...it oil...lol

Guessing again!

Full Time Employees: 728

BUSINESS SUMMARY
Forest Oil Corporation, an oil and gas company, engages in the acquisition, exploration, development, and production of natural gas and liquids primarily in North America. As of December 31, 2007, the company had approximately 2.1 trillion cubic feet equivalent oil and gas reserves, and owned interests in 458 gross wells containing multiple completions. In addition, it holds interests in various projects located in Italy and South Africa. The company sells natural gas on a month-to-month basis in the spot market under short-term contracts, as well as through a joint venture with other producers, or under direct sales contracts or spot contracts in Canada. The company was founded in 1916 and is based in Denver, Colorado with additional offices in Houston, Texas and Calgary, Canada.

based on bakken holdings, also rated highly across the spectrum.

Rated 4 stars by S&P, B by Charles Schwab, 4 stars by CAPS, and Buy by Market Edge. With that much agreement it has to be a winner!!