RE:How Under-Valued is VII Vs. Peers Part 1 of 2Very good analysis.
I strongly agree with you here. They are extremely undervalued.
The markets have been getting hit especially when it comes to oil in Canada.
Remember what happened to Meg and HSE. (HSE is run by Li-Ka-Shing and his company has over 1B shares but the float is just over 30% with him controlling the majority.) I say this as I worked directly with one of the top guys in Canada in the mining industry which was inducted into the miners hall of fame. He ran his companies tight - low floats and avoid any short issues, takeovers, etc.
Hostils can happen here especially with such a deep discount and still a large float (91.88%). I don't know specifically how much is so called locked up with institutions but with their 362.2 million shares outstanding I have seen some of these patterns before and right so with certain price action going on. It is M&A time for many in this sector right now and it should be.
I think its not only up to Marty or the CFO to agressively run a NCIB as they want extra powder in their keg for later. This will be up to the team including specifically Brian to get on the blower and place stock with institutions in large blocks.
As for the stock I think we have bottomed out here and we should see upward momentum and price moves to the upside moving forward.
Remember we have seen the Nasdaq and Russel 2000 in correction territory with the Dow and S&P following but not quite there. Panic is out there but here is where the bargains are espcially with VII.
Also playing into this has been Saudi Arabia, OPEC, Iran sanctions (on then off then on) Russia, anotherwards changing agreements, record oil production, Canadian pipeline constraints, political nightmares for Canada in the oil sector, seasonality, etc. Refinery utilization is low currently, which spells lower demand, lower crude price. All of these can be turned on their head in a instant. Thats how the oil market is and always has been.
I am a big buyer in here and was buying when we were in the red heavily Friday. I am doing my part - buying and locking up.
I belive this will be short lived for VII one way or another.