Vii Generations Asset Rich, Who's Next I think VII generations is asset rich, but i think it has been their own poor execution that has got them to the point they are with the markets. TOU is worth 11 percent more from a market cap perspective, and VII generations has significantly more cash from operations.
Vii generations has had to replace their CFO and their COO, how does that happen in a well run company, the only thing i have to say is now the COO has a chance to prove himself, and maybe the company can demonstrate their value to the industry, that is excited about an LNG announcement.
A new empty gas plant, is an asset for the Rich and Famous, let see how the company makes it work and creates share holder value, the management seem to know how to compensate themselves, lets see if they can give a little back for the shareholder because the stock performance has been dismal.
The company is going to get cash from operations in the third quater i estimate around 500 million dollars, TOU realized 19.53 a boe last quater, where VII generations is getting 42.42 almost twice as much. TOU get 12 dollars a boe and VII generations has opernating netback of 28 dollars a boe, Tou cash flow only 270 million dollars, vii generations will be 500 million next quater. .
Management needs to figure out what they are doing wrong and why the market looks so poorly at VII generations, They replace the COO, they replace the CFO who is next Marty because it appears the problem is at the top.
IMHO