Valeura Energy Inc T.VLE

Now that Brent is again around $80

[bullhorn3]

Anyone have a clue why this stock can't make it above $5? They are spending a fair amount on drilling, but production has consequently risen, no debt, pile of cash in the bank, major shareholder Thoresen is neither reducing nor increasing its holdings, P/E around 9, 1 year target share price from multiple analysts around $10. They are examining potential acquisitions, but they are in no hurry. What's up?

[Bigpond]

Hard to explain if recent spike in share price was result of spike in crude price or because of the news release related to daily average production. Number of O&G entities including ExxonMobil have touched 52 week highs in recent days but vle seems to be lagging. Didn't understand the 2% + loss in Friday trading.  GLTA 

[windymayor1]

Things to consider. Cash increased by only $10mm Q over Q. Investors r getting impatient with no M&A. It has been 1.5 years since last big acquisition and no follow up on any additional. Even a smaller 3-7k boe/d add would be something. Also tax pools have not been approved by new Gov't. Investors would sooner buy energy stocks with divvy versus wait another 1.5 years for growth by M&A

[bullhorn3]

1. cash not increasing: Any ideas why? How about 24% increase in oil production which required money spent on drilling. 2. no acquisitions in 1.5 years: True. Name 10 of your favourite companies and we'll hold them to the same standards that you have. The current darling TNZ waited more than 1.5 years before acquiring NAM, so I guess you fault them too. 3. Tax pools: AFAIK tax pools not

[AucontraireII]

I think also we need to factor in the cash equivalent of oil in inventory to the tune of 1.2 million barrels.  That's quite a bit of cash sitting there waiting to be sold, no?

[Carbonbull]

Simple there is not a shareholder base for small cap oiland gas companies seeking growth , the current issue in Canada are the insistance on returning cash to shareholders , Like it or not that is the capital markets we currently have. the only company's that get rewarded for m and a are large cap consolidators like CNQ. For the patient investor this stock (if oil steadies) will eventually

[energee]

Agree that the Chevron sale of CDN assets shows that Chevron will sell non-core assets. I expect VLE is well aware of their production base.

[Chincy1]

I would expect VLE is well down the path as it relates to the chevron assets in the region.