RE:Vet should be $25 dollars and still be producing 16% FCFThe way i look at it is this, companies like CVE/VRN are trading closer to 10% FCF, and Vet is trading much higher 26%.
VET between the debt and the share buyback added about $3.75 for every share in terms of balance sheet strength, in the last year, not counting dividends.
So if I buy a ton of 2027 Jan options, the stock should be up $7.50 just on the basis of FCF and how it contributes to the balance sheet strength and share buybacks, and then there is whatever growth the company experiences on top of that.
If think this stock is simply way to cheap and buying a bunch of in the money call options is the best way to play it, tie up as much stock as you can, because the FCF generation is simply crazy good and it keeps adding to the balance sheet.
This is a place to make big money.
IMHO
MHP