RE:RE:RE:RE:RE:RE:NCIBPandora wrote: Oldnagger wrote: You are being cynical. What is different now is that the current share price is way below not only present value but especially below future prospects as hedges come off in 6 months and as drilling on existing land plus new acquisitions pick up.
Paying down debt was never a high return activity. Drilling and acquisitions are high return activities.
The use of share buybacks will enhance those high return activities !!
Do not forget , the world is desperately short of the energy production necessary to meet both present and future demand. Vermillion is very well positioned to take advantage of opportunities as they arise !!
You will be getting a bigger piece of the pie without any out of pocket costs !!
One last thought, think about the G part of ESG , I doubt very much that VET would want to lower their score by screwing up their NCIB
Sorry Oldnagger, not being cynical at all. Probably not smart enough at investing to know how to be cynical. I was trying to say I do not understand your statement that if I bought before the crash I should feel vindicated by the NCIB. I apologize if my lack of knowledge does not make the connection -- not being a sophisticated investor such as yourself -- some of us are different. Maybe I just don't know enough to recognize the value. I purchased my shares at about $19.50/sh and was receiving a nice dividend at the time. Don't have a lot of money so therefore do not have a lot of shares. The dividend was cut in half and then cut in half again and then got eliminated -- didn't help my monthly cash flow but that is the way things go at times. The share value then dropped into the $3 range. I wanted to purchase more but had no cash flow. OAS doesn't go that far. I was still looking at picking up more as it got to the $7 - $9 range but my luck with my other stock holdings was also in the dumper - nothing would cooperate and get into a stage where it was worth selling to buy more VET, on a wish and a prayer. And then VET turned up -- and still nothing else did. That's all hindsight now.
When you tell me I will have a much bigger piece of the pie I can understand the basic math formula in that if the company cancels those shares they buy back, then the O/S shares get smaller. Trouble is if you divide my share count over the O/S and you get a number with 4 zeros and a one to the right of the decimal point -- whether that be with 165M or 150M it's still an amount that is insignificant, although the math, as you say, says it's a bigger piece of the pie. The guys with larger holdings will find it easier to recognize that difference in size. Bottom line though is that I still can't say I understand your comment re being "vindicated".
Now regarding the last part of your response you make reference to not wanting to lower their score by screwing up their NCIB -- again that is over my head -- is there actually a scoreboard with somebody? Or are you in some way implying something else? Should I even ask?
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Governance
Standards for running a company
- Board composition
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Audit committee structure
- Bribery and corruption
- Executive compensation
- Lobbying
- Political contributions
- Whistleblower schemes
Not meaning to offend you in any way but I'm just suggesting a comment like that just goes right over my head -- but maybe that is fine, and I just don't need to try and figure out the meaning. I'll leave it to the experts to rationalize amongst themselves.
I believe that the G part that could be afflicted comes under Executive compensation. If a company uses a NCIB program mostly to cover up an excessive issuance of shares to the executives , then that IMHO would hurt the overall ESG score. But then I never dug that deep to prove my statement.
All I can say is that I hope I am not wrong. I also was a shareholder of VET pre crash. I did use margin among other things to augment my stake. definetely a stupid thing to do. Nevertheless, I did post at the time , that that was an option for those who needed funds.
My true weakness in life is my optimism. I have actually been thru a lot and now find salvation thru optimism. I try to marry my optinism with diligence. If that makes me a sophisticated investor so much the better. It is not a birth right. If I can achieve success, then I really want to share with others how I feel it can be attained. The last thing I could possibly want is to deceive others.
All that being said , I really believe that the course that Vet is now taking is the best for shareholders. Management has changed and I have now hitched my fortune to them. After previous bad experiences (Painted Pony) I have made research on management my lead issue when it comes to due diligence. Of course it doesn't hurt that lady luck is now on our side. But this time , I truly believe that we are on an even brighter course than before and that yes you and many others who have stayed the course will achieve vindication (your share price is already above your purchase price ) , as eventually the share price rises to a much higher level , then the cash flows can be diverted to much greater dividends. Let us all just hope we can all make it till then and if not that we enjoyed our ride on the way !!