RE:Saudis going scorch earth, VET still confused and in denialSaudi Aramco fell 9% overnight (Stocks trade Sunday through Thursday in Saudi Arabia.) Although it has only traded since December, this stock does not normally have much day-to-day volatility. A 9% move is off the chart for Saudi Aramco.
So what do you think VET and other oil companies are going to do at the open?
VET is already 4-5 moves behind in this difficult business environment. They should have cut the dividend to a token payment or suspended it completely. I see the lenders telling VET to do exactly this in the coming months.
I’ve told you it should give you great pause that I know better what moves VET should make and have a better understanding of the different business environment than the VET executives. And I continue to be 100% spot on. Unbelievable!!!
JMHO. GLTA.
WheresMeGold wrote: I have been emphasizing for months that VET has had its head in the sand by not recognizing the difficult business environment it faces and its deteriorating balance sheet. Many on this board were angry at me for trying to pull their heads out of the sand and expressed that anger by mocking and ridiculing me. I guess the market has forced your heads out of the sand.
The Saudis now how decided to go scorch earth after Russia backed out of OPEC+. VET had the chance to do what it should have done years ago by significantly slashing its dividend. A 50% cut was not enough to keep the balance sheet from deteriorating further. Lenders will be highly reluctant to continue lending money to VET, something VET needs to survive.
So what will it do to investor confidence when VET needs to slash or even suspend the dividend in coming months? VET better hope for coronavirus 2.0 to blame it on. But really, how do you finally make the decision you have been avoiding for years to the detriment of the company and shareholders and then screw that up. Amazing!!!
JMHO. GLTA.
https://www.bloomberg.com/news/articles/2020-03-07/saudis-plan-big-oil-output-hike-beginning-all-out-price-war?srnd=premium