RE: Whats wrong with this Stock ?According to Doug Bartole, Pres, NG is unprofitable to explore unless the price is 7.50m/cf+
Unfortunately VRO got caught with their pants down last fall with falling prices, no hedges in place for 2009 and drilling commitments which required them to max out their credit line.
With gas prices in the 3.50 -4.00 range for an extended time, there is not enough cash flow to either raise production volumes or pay down debt.
Consequently, they are in a period of inactivity and there is little investor interest.
There will have to be a serious move in NG to get the SP going, but when that does happen, watch out.
Vero is in a good position to start drilling and adding production quickly.