Vermilion Energy Inc T.VET

Vermilion Energy (VET, $13.97): BMO Analyst Lowers Both

[WTFMAN]

The stock of the Canadian oil company has faced significant volatility over the past year, primarily due to numerous uncertainties, particularly related to gas prices in Europe and production restrictions in Germany.

Jeremy McCrea, an analyst at BMO Capital Markets, fears that these uncertainties will persist, limiting the growth potential of the Calgary-based firm. As a result, he has downgraded his recommendation to Market Perform and lowered his one-year target price from $20 to $16.

There is no doubt that the potential of wells in Germany was a factor attracting investors. Although the company announced last month that its first well in that area was a success, the analyst notes that extraction is facing restrictions that limit short-term cash flows.

Furthermore, while these wells have the potential to deliver excellent returns, the high estimated costs of around $35 million, along with the exploration risks and restrictions that could last several years, lead the analyst to revise his forecasts. Given the current context of low oil prices, the analyst believes that this situation should encourage investors to remain on the sidelines until changes occur.

The analyst also notes that the stock is facing the largest short position among investors in the energy sector, with 13% of shares outstanding.

4o mini

[Oldnagger]

The need for short investor's to rebuy 13% of  VET  shares could surpass VET 's 10% Annual NCIB purchases . What a kicker that would be !! All the more reason for VET to prioritize buybacks 

[Quintessential1]

Yeah, I don't want to second guess this analyst but if VET really had a 13% short position against it I am sure he would stuffing a wheel barrow worth of cash and his grandmother's too into it. Kind of makes his German well position and share price target a little suspect too. Here is what I have seen regarding Germany: VET hit a 17mm cfpd restricted natgas well...that's 17000, 10

[GregC24]

Well, at the end of September it was almost 10% so he could be right or is not far off.  https://www.marketbeat.com/stocks/NYSE/VET/short-interest/

[Quintessential1]

Yeah I am not seeing that many shares short being reported on any other site except the link you provided. Is it possible that you and he are using the same site and you are both wrong? I would verify it if I were you it still seems large even at 9%.  That is not just short interest. That is a short attack. GLTY and all

[downwithdotcom1]

VERY INTERESTING-from the TMX money website...see below..thoughts?? dwdc T.VET (TMX) Short Interest as % of Float 2.61% VET (NYSE) Short Interest as % of Float 9.72%

[Oldnagger]

My guess is that the only people selling VET is the Short sellers themselves !!

[Quintessential1]

That would explain the difference in the percentages in the sites.   Now are they additive and do they use the same share float total as a basis for their percentage? GLTY and all

[Oldnagger]

Not to belabour the subject , but Vermillion is also listed on the Paris Bourse under the symbol CVZ.F peut etre les ventes a decouvert sont cachees la ,non?

[MyHoneyPot]

Considering that they have some isolation from Canadian gas prices + With those montney wells coming online, they should have a solid quarter? MHP IMHO