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Vero Energy Inc T.VRO



TSX:VRO - Post by User

Post by bigbabon Dec 12, 2011 5:19pm
343 Views
Post# 19314770

natgas prices 3.25

natgas prices 3.25..a stone's throw away from the 2's.  Well mgmt needs to clean up this balance sheet...fast!   That means a) stop spending money  you don't have b) delay natgas development until prices rise and its worthwhile,otherwise just wasting the resource selling it now at 3 ,when they can wait 2 years and sell it at 5 or 6  ..when the LNG terminals are built and there are more gas powered cars on the road.  Continue to develop the oil as planned which can keep the company going for several years ...but most importantly sell that asset!   OR Sell the entire company or find a strategic partner who has cash and has a cleaner balance sheet than VRO. MGMT has got themselves in a mess...if you cannot execute then it might be time to put all ego's aside and put a giant "for sale" sign on the company like many have called on for years....before it's too late.   This winter is on pace to be one of the warmest in recent history...sitting idly by waiting for a recovery in natgas spot prices is not the answer!
Bottom line....VRO does NOT  have the cash /cash flow/ or investment dollars to develop the assets that they have.....and "unfortunately" the recovery in natgas prices is likely several years away , THEREFORE.......seeing how the stock is at a 10 YEAR LOW ....mgmt and the board NEED TO DO SOMETHING POSITIVE ......  and IF mgmt cannot execute this..they need to be replaced.  Time has come to put the best interest of SHAREHOLDERS AND EMPLOYEES at the forefront..........
a) spin off assets
b) curb growth and expenses (for now-until industry fundamentals improve) / repair balance sheet
c) find a strategic partner  OR sell the company while you still can
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