Seeking Alpha

Getting smaller can be a good way of cleaning up a balance sheet and improving a company's growth prospects. In the case of Forest Oil (FST), though, I have some real concerns about whether management hocked the family silver and kept the stainless steel instead. I do believe that Forest shares trade below their current NAV and that more experience could lead to better results (which in turn would lead to a meaningfully better NAV), but that upside has to be set against the reality that Forest Oil may be on the outside looking in when it comes to the Eagle Ford and may not have the capital or technical expertise to maximize the Permian assets anytime...

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