RE:Trying to Stay InI dumped 200K shares in the last two weeks to buy AOI after watching them sit on $750MN cas for years and finally buying into Africa while adding a BN or so so indebt tfore massive cash flow. No bait and switch here.
VLE is 5-8 years off seriouis cash flow from deeps (if they find another sucker to rerplace Equinor) and with the bait and switch now, plus the very low management integrity, on top of their pittiful cash pile, this is just a management and consultant paycheque.
Still have a large position though:) Will probably reduce to 25% of what I had last month though.
energee wrote: - Cash value is $0.615 CDN - trading today at 74% of cash value
- Nil market value ascribed for the undeveloped land holdings in Turkey
- They state they have a " Clear strategy to unlock value" but they haven't even achieved a market valuation for their depleting cash
- They state that they plan to pursue "inorganic growth M&A deals (eg. buy producing assets)
- Hard to do M&A deals when your currency (VLE shares) is trading at 74% of cash value - although cheap VLE shares could be attractive to a potential M&A target
- With $53MM CDN in cash, they would never spend it all on a deal without doing a new raise
- Acquisitions for producing assets (with upside, ignoring lending value) for $45MM CDN cash in today's market might buy them 2000 - 2500 boepd, perhaps 40% more production if they leverage the asset
- They have not stated what continent they intend to pursue but it appears that Management and Board are experienced and in various basins in the world, albeit working for majors most of the time
This company, IMO, is an under-followed junior with well compensated management and its best asset is cash. Time to do something.