Topic: How To Invest

Pat: Your opinions please on Legacy Oil + Gas, Lydian International and Scorpio Mining.

Article Excerpt

Legacy Oil + Gas, $6.05, symbol LEG on Toronto (Shares outstanding: 157.2 million; Market cap: $948.1 million; www.legacyoilandgas.com), is steadily increasing its production in Western Canada and North Dakota. Its output is weighted 92% to oil and 8% to natural gas. Legacy has lots of drilling targets and undeveloped exploration acreage. Its production rose 16.5% in the three months ended September 30, 2013, to 19,489 barrels of oil equivalent per day (including gas) from 16,726 a year ago. Cash flow per share gained 30.8%, to $0.51 from $0.39. The stock trades at just 2.6 times Legacy’s forecast 2014 cash flow of $2.33 a share. Legacy Oil + Gas is okay for aggressive investors to hold. A: Lydian International, $1.08, symbol LYD on Toronto (Shares outstanding: 130.2 million; Market cap: $139.3 million; www.lydianinternational.co.uk), is a U.K.-based company that develops and explores for gold. It is currently focused on Eastern Europe and, in particular, developing its Amulsar gold project in Armenia. Lydian also…