Valeura Energy Inc. T.VLE

Flag formation with breakout looming

[goldwatch69]

Stellar news again from this great management and operations team! They obviously know what they are doing.

Consolidation in a flag formation has appeared in the chart and with the new discoveries,  another breakout is looming as everyone knows that EV is still way too low, rerate is still in the works and now even more oil is present. These fields are endless!

Comparing the far right of the yearly chart
Stockwatch VLE

to a typical flag formation with diminishing volume

Investopedia Flag Formation

spells consolidation without a dip, pausing for a rally or another breakout.

"Usually, there is a surge in volume as the stock builds the flag pole. Volume then tapers off precipitously as the stock price consolidates. The breakout from the bull flag often sees another increase in volume, although volume may not increase dramatically."  Source: Investopedia 

With recent Q1 cash flow of over CA$50 million in FCF and increasing production, year end cash position may be well over CA$500 million positioning VLE as a potential unicorn stock at CA$1 billion by year end. EV over cash flow should reach a minimum of 2 in my opinion.  

Onwards and upwards!

[firstworld]

Looking for the 3rd party validation and dont see any.  Holding legacy 200K shares now stopped at 5.50. Expecting a 20M share dilution so they can pay for the 3rd party assessment and development of the new finds.

[Toppicks1]

I would like to see them raise 120 million for a PP of 6$. Hire 2 more drilling rigs and let them drill baby drill. Exiting 2024 with 40k production. Enjoy the ride. Straight up from here.

[cyber37]

I would much prefer an organic growth rather than issuing new equity to buy new rigs. While true that company does not benefit directly from this healthy share rise it may also be too early to ‘cook the golden goose’ before it matures a bit more by diluting a share structure. Balanced growth supported by what appears to be a good cash inflow may work the best in what is still a steep learning

[energee]

Don't see that raising capital is required at this point. Exploit these newly understood properties and build the production and reserve base. Logistics for offshore require significant investment in facilities as they well know.  Then do an accretive acquisition using cash held and some of our undervalued shares to get it done.  This team is on point.