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Seven Generations Energy Ltd. class A common shares T.VII

"Seven Generations Energy Ltd is an independent energy company focused on the acquisition, development, and optimization of high-quality, tight rock, natural gas resource plays. The company employs long-reach and horizontal drilling to produce resources of natural gas, condensate, and natural gas liquids. In addition to drilling operations, Seven Generations owns several gathering lines and processing facilities. The company depends on a skilled technical and business team to identify, capture,


TSX:VII - Post by User

Comment by dalerules88on Nov 09, 2018 12:50am
30 Views
Post# 28948368

RE:RE:RE:Vii lost over 10% after the so-called share buyback program

RE:RE:RE:Vii lost over 10% after the so-called share buyback programtrading after NR is always emotional - look at VII after its release few days ago, also big jump - unfortunately, most stocks revert to the trend line within two or three days ususually; that's because market trends come back to fore once emotion dissipates;

for the year, TOU and VII trend more or less the same, it's just that overall valuation is much less for VII when you use enterprise value to cash flow as a metric

EP copmanies used to trade at 5-6x EV/EBITDA, then we slumped to 5-6x EV/CF (where TOU is now, basically) and VII is at 3.7x EF/CF - this is a valuation problem, not a trend problem, or daily swing problem, but upside is, if they have free cash flow, they can use it to buy back shares and increase shareholder value that way; only question is, will they, or will they pay down debt; at 6.2% interest, the debt is manageable, so it would not surprise me if a significant portion of the free cash flow went to share buyback and possibly efficiency enhancements; 

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