RE:RE:Anthony Marino
Yeah, I'm trying to figure out why the market didn't like the earnings too.
I've done some reading of the results, and I don't see anything that hugely impairs the value of the company. Earnings weren't stellar, but conversely, they weren't horrible either.
Also, I'm not worried about cashflow to cover the dividend (at least not at this point), especially since Vermilion was among a rare handful of energy companies that never had to cut their dividend during the oil slump a few years back.
I also like the broader diversification of this company.
Natural Gas in Europe and oil in Europe are not tied down by record low prices due to pipeline constraints. Furthermore, VET is probably expanding in Canada at an opportune time (i.e. buying companies at a market low, means that no exhorbitant premium is payed for good assets that will cashflow into the future, especially now that it looks line Line 3 will be completed in about 18-months and Keystone XL slowly edges towards production).
I didn't buy any shares today, as I've been burnt in the past for jumping the gun to soon; but after researching a bit this evening, I'm rebalancing some of the cash that I've been accumulating, and will be topping up my holdings of VET. The dividend alone is more than twice the rate that one get can from fixed income, and potential upside would appear to be much better as well, especially if I'm paid to wait with the healthy dividend.
We shall see.
GLTA
C