Vero Energy Inc T.VRO

Canada Hot Stocks: Lululemon, Vero, Connacher

[liquidcool]

Among the companies whose shares are making notable moves in Wednesday's session are Lululemon Athletica Inc. (LULU), Vero Energy Inc. (VRO.T) and Connacher Oil & Gas Ltd. (CLL.T).

Goldman Sachs raised Lululemon ($49.73, $2.73, 5.8%) to conviction buy from buy, citing continued growth momentum.

Vero Energy (C$2.83, C
.18, 6.8%) is adding to Tuesday's gain after saying it will sell certain natural-gas assets to a private oil and gas company for C$209 million and distribute a portion of the proceeds - estimated at 30 Canadian cents a share - to shareholders. Shares closed up 27% Tuesday.

Connacher Oil and Gas (C
.73, -C
.16, -18%) said it expects strong fourth-quarter results based on higher crude and bitumen prices, leading it to suspend a plan to find a joint venture partner for certain of its Great Divide oil-sands assets until around mid-February. It also announced management changes.

-By Dow Jones Newswires; write to [e-mail]

[Baxter4]

Silly question, but why distribute the 30 cents to shareholders. Wouldn't it be more useful accelerating development of the Cardium plays? Otherwise they will just build up the debt again and may end up in the same financial straights.

[gghoppa]

I would bet that management holds a significant volume of shares and they'd like to see some cash from this deal.

[testy1]

  I sold yesterday.  Don't want to wait for them to drill more wells or someone to buy it out.  Lots of good companies I like. As far as Nat Gas goes, I don't see where the new demand will come from.  Lots of hedging.  Even many  homeowners are hedged with 2 to 5 year gas contracts at a fixed price.   

[ecolo101]

Why not taking the 0,30$ at the end of the month on the closing of the deal? I don't understand????? 0,30$ on 2,80$ is 10.7% more ??????   Do your own dd

[filefish]

I think they should give long term shareholders the option of taking deep discount  stock options in lieu of cash , just for having stuck with them thru this  ordeal .