LRTR closed the last trading session at a price of $0.75 for a share, or with no change in the closing price from the previous day. The interesting thing was the incredible trading volume of 2.58 million shares, a very extraordinary value for the illiquid stock and an absolute record for the past ten years. Certain technical indicators suggest that the share price could go higher and on Thursday LRTR touched the $0.8, the highest price reached on the day of the latest press release from the Trust.
Another interesting fact, along with the lack on any recent news that could cause the unseen volume, was that on the day of that latest press release LRTR price hit also the yearly bottom, expressing the high uncertainty of traders. The update said that LL&E Royalty Trust and its Trustee will be the defendants in a compliant filed by Mr. Jeff Beckett who argues that he owns 1.9 million Trust units and seeks among other things to modify the termination provisions of the Trust Agreement and to prevent the sale of the Trust’s assets.
According to a previous update by LRTR, under the Trust Agreement the Trust is required to sell its assets by December 31, 2010, but the lawsuit is expected to have negative effects on the timing of the sale as well as on the price at which the assets can be sold. The positive side of the update that maybe managed to pause the share price decline was that LRTR also reported the preliminary royalties from its Jay Field project, amounting $7.44 million in August 2010 and $7.35 million in September 2010.
At the same time, the only SEC filings of LRTR that remind of its current financial results are some notifications of the Trust’s inability to file timely the reports. The reason for the enormous volume on Thursday is also yet to be seen.
