RE:First Things First Ok, first off I think some of the stuff you said is a little misleading and some I can understand. So lets go through this all one by one because a couple people on here seem to be confused about what a company can do and how a company can grow. There’s a difference and I’ll give you several examples of companies that don’t have good websites or put out news releases, but they market cap grows because in the end, PROFITABILITY is what adds value. Having the opposite with a company pumping but no numbers to back it is FAR WORSE than what the later. The pump and dump days are over and small caps have to show internal growth before they can even consider the market to the public.
1. Retail that understands how to read balance sheets and income statements don’t really care about news releases and presentations. That stuff is to spoon feed amateurs that probably won’t even buy much in the stock in the first place. Smart money wants numbers, not non-sense news releases.
2. Stock only moves when insiders buy or sell? Insiders haven’t bought or sold in years, check the insider filings, so that’s the real misleading statement. Plus the fact that they own so much, a 61-101 report has to be filed before any shares can be bought or sold. As well, why would they sell now when the stock is trading at such a small multiple. Similar companies with the earnings that VUX has would have around a $65-70 million market cap right now. Then you’re saying the stock doesn’t trade, we’ve had 6 figure volume for several days and today the entire market is slow, so you pick it as the one day to make this scenario up.
3. Why wouldn’t management care about shareholders, they own the most stock! The reason they make such big profits is because money retained is going back into drilling, not large salaries. Insiders own over 67% of the float and the only way they’ll ever see their money again is through a company sale, not salaries. If you look at the history on this, the shell company before it turned into Vital, the insider group bought 21 million shares at 45 cents a DECADE ago.
4. I can tell retail is the one confused here or new investors because how can a company speak to shareholders when they’re in blackout. It’s ILLEGAL. We need Q1 2022 results come out end of May before those assumptions can even be brought up.
Now back to the lack of news info. Right now markets suck in general, but I can give you examples of companies that have gone up over the last few years (TNA.V, GB.V, FBF.V, WCE.V, etc.) up 100-500% over the last year or two and they have done so with little or no news, with terrible websites and no presentations. Why? Because smart investors read balance sheets and that’s how the money is made. Yes that stuff helps, but if shareholders need to rely on it, they’re in the wrong sector and market cap.
Yes, I do agree that news can help attract investors sooner than later, but eventually all stocks get found and a proper evaluation happens. IVX.V was another one, 15 cents to $2 and nobody knew about them. VUX actually put out strong news last fall which got the attention of investors and then the oil price increasing and profitable quarters coming in helped push that along.
I don’t believe you’re an investor here, just someone bashing or trying to mislead people, but it won’t fool me or several others on here. When VUX is capable of earnings several cents per quarter in CASH that can be used for dividends, share buybacks, drilling, acquisitions, the company is growing. If the cash just sits there, the company is worth more. See where I’m getting at here? Capitalism exists for private/public entities to make money and if they can’t do that, the business isn’t viable.
For those that are shareholders, I would ignore what’s being said here and continue to follow the numbers on Sedar. We have Q1 2022 results coming out in a few wees and Vital Energy should be adding at least another $4 million net profit after all expenses and some work that was done on Gull Lake.