TSX:VSN.DB.B - Post by User
Comment by
jaiyenyenon Jan 01, 2017 11:40pm
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Post# 25658578
RE:Good overview of Veresen
RE:Good overview of Veresenhawk35 wrote: https://seekingalpha.com/article/4033433-veresen-big-discount-midstream-cash-flows?app=1&auth_param=j5gqb:1c6fi8t:fe078dbf758c8fe41e286ac312bbf988&uprof=45
This article is well written and helps investors understand the value proposition offered by VSN. The paragraph below (blue tesxt) caught my eye because up to now I really didn't consider the possibility of VSN being acquired.
"One final factor to consider is the potential for a takeover offer from a larger player in the space. Consolidation is possible coming out of this depression in resource prices, and Veresen offers some of the cheapest cash flow in the market. The firm's size would make it an easy target for many midstream companies interested in getting a strong foothold in the Montney. We haven't weighed this into our valuation, but we think it's something to keep mindful of as their current projects near completion and the firm divests of the power business."
Great dividend and growth play with wildcards being JC or potential buyout. What's not to like.
Personally I would like to hold on to my vsn. stock as I really feel the future upside would be much greater than a takeover. I admit I am not an experienced investor so could you explain the benefits of a possible takeover and how we would benefit from it.