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Vero Energy Inc T.VRO



TSX:VRO - Post by User

Post by JohnJBondon Dec 28, 2011 3:24pm
459 Views
Post# 19355017

Sinopec

Sinopec

On Dec 23, Sinopec announced it has completed its purchase of Daylight.

This is relavent here, because it appears Sinopec has succeeded in taking over a Canadian Oil/Gas Company.    This begs the question - who will they buy next?

VRO may not appear to be a prime target, however its recent trading pattern is very similar to that of Daylight prior to its Sinopec takeover.

IF VRO is targeted, I expect Sinopec will use the same strategy they applied to Daylight - ie drive the price down to the best of their ability, or alternatively, do all they can to stop any upward price advances.   It was quite strange watching Daylights price fall or hold flat, when Oil/Gas was appreciating, and/or the sector was advancing.   There are similarities in VRO's recent trading.

Also consider the lack of recent VRO insider trading at the present low prices - one explaination is the company is presently in negotiations.

I don't see VRO on Sinopec's radar - however I do see it on Daylight mgmt's radar.   I suspect Daylight mgmt now has access to a vast pool of funds that was previously out of reach.   ie, if Daylight mgmt sees a good accreative takeover target, they'll talk their new owner into funding the purchase.

Daylight is the product of multiple takeovers - prior companies in which I held shares, West Energy and Highpine, were both purchased by Daylight mgmt.   Now they've get access to new funds - I expect they will quickly restart their growth by takeover strategy.    VRO seems like a good fit, and the price is compelling.

 

 

 

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