RE:RE:RE:RE:RE:RE:Share Price Punished?Oldnagger wrote:
EnergyWatcher55 wrote: Can you explain what you mean that VET is paying $11 per year in FCF for a $30 per share?
FCF or free cash flow is what is left over after sufficient cash has been used as Capex to sustain production. It can be used either to grow the company or to pay down corporate debt or return it to the shareholder by way of buybacks or dividends.
Think of it as a business that you can buy for 30 thousand dollars and will pay you back 11 thousand dollars each year , most likely for ever. Well that is the way I look at it anyway. Many others have different opinions. Up to you to make your own opinion !!
agreed. That's how I look at it. Mgmt is likely to lean heavily towards buybacks until the share price is more reflective of actual value.
11 fcf/share is a ridiculous number. If they mostly buyback shares from now through 2023 and then go into 2024 and flip to 50% fcf dividend, they can pay out 5.50 a share in 2024. Yielding 5%, that suggests a share price >100.