Forest Oil: Special Situation, Micro Cap, Agency Conflict, Liquidation Scenario - The Value Dream
- FST is an elegant credit arb/ quant hedge fund trade gone wrong and unwinding creates massive opportunities in next 3 months.
- Fundamental investors willing to do their homework stand to reap massive gains to exploit inefficiencies.
- We believe FST to be worth 50-300% more post merger due to deleveraging, production scale with Sabine, and street re-analysis of the stock from micro-cap to mid cap.
- Micro cap nature, terrible performance, negative book equity, deep discount to NAV, and hedge fund forced unwinding make a situation that fundamental guys dream about.