RE:RE:RE:Analysis to express to Vermillion Management- Any Thoughts?Winston, today European gas is up and VET is trading down slightly.
I appreciate the work VET finance has done on the balance sheet but enough already, especially when the debt reduction has not being reflected in share holder value appreciation.
I am begining to wonder if the Finance group wants to take out the 2025 bond that comes due next year with FCF. It a noble objective, but with the shares so offside, they need to be conscious of the buyback opportunity at their doorstep and they will not have this opportunity again.
Finance should not run the company, or should they ask the company to pause 3 quarters while they make a debt repayment objective, that will not remedy the share price under performance. (Misprice) I am sure their Bank line will cover what ever remains on that bond.
Finally, every Capex decision should be made with the premise in mind they can get 34% capital appreciation in share buybacks.
This is a table pounding opportunity, and Management should embrace this on behalf of the current shareholders.
IMHO
MHP