Post by
Carbonbull on Oct 24, 2024 8:23am
Relative value
Virtually all oil names except the big/mega caps have been sold off this last round of weakness in oil price , I can understand this for the names that deploy debt , as holders of the debt tend to get quite aggresive in these circumstances, VLE stands out as being debt free and cash rich.
So why no respect , its because the above mentioned names which play decent dividends are now all able to provide a double from current prices ...so is a double with superior liquidity and dividend pay worth more then a trile with so/so liquidity and no dividend ....if you get timing right probably ..but that is a big IF for most fund managers so capital flows to the midcap sector. VLE needs to either vault into the mid cap by M and A , or institute a dividend policy in order to attract fund managers money ,,,this is primarily a retail stock. I am hoping the Chevron assets are truly in play ...hate growth company paying dividends.
Comment by
cyber37 on Oct 24, 2024 10:19am
" ...hate growth company paying dividends." agree. At a growth stage now; VLE stock has plenty of room to move up just through an organic growth. Way too soon for milking earnnings. G37