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Bullboard - Stock Discussion Forum Vero Energy Inc T.VRO

TSX:VRO - Post Discussion

Vero Energy Inc > natgas prices 3.25
View:
Post by bigbab on Dec 12, 2011 5:19pm

natgas prices 3.25

..a stone's throw away from the 2's.  Well mgmt needs to clean up this balance sheet...fast!   That means a) stop spending money  you don't have b) delay natgas development until prices rise and its worthwhile,otherwise just wasting the resource selling it now at 3 ,when they can wait 2 years and sell it at 5 or 6  ..when the LNG terminals are built and there are more gas powered cars on the road.  Continue to develop the oil as planned which can keep the company going for several years ...but most importantly sell that asset!   OR Sell the entire company or find a strategic partner who has cash and has a cleaner balance sheet than VRO. MGMT has got themselves in a mess...if you cannot execute then it might be time to put all ego's aside and put a giant "for sale" sign on the company like many have called on for years....before it's too late.   This winter is on pace to be one of the warmest in recent history...sitting idly by waiting for a recovery in natgas spot prices is not the answer!
Bottom line....VRO does NOT  have the cash /cash flow/ or investment dollars to develop the assets that they have.....and "unfortunately" the recovery in natgas prices is likely several years away , THEREFORE.......seeing how the stock is at a 10 YEAR LOW ....mgmt and the board NEED TO DO SOMETHING POSITIVE ......  and IF mgmt cannot execute this..they need to be replaced.  Time has come to put the best interest of SHAREHOLDERS AND EMPLOYEES at the forefront..........
a) spin off assets
b) curb growth and expenses (for now-until industry fundamentals improve) / repair balance sheet
c) find a strategic partner  OR sell the company while you still can
Comment by ecolo101 on Dec 12, 2011 6:30pm
It sound like a plan !!! Just look at HNU and you will understand why we are going down, HNU was reversed split 4:1 at around 10$ and now they are at 8,60$...It is a pure play on GAS.Just wait end of December and early January and GAS stocks will recuperate quickly. This will be one of these one day or one week event where they will go up by 30% quickly...All this is driven by Demand and offer ...more  
Comment by filefish on Dec 12, 2011 6:41pm
You should call Doug Bartole on the phone , read this message word for word, and then see what he has to say.  
Comment by kavephish on Dec 13, 2011 11:56am
HNU is not a good comparison to VRO or any gas/energy stocks.  VRO doesn't have the erosion or contango that HNU does, and that is the true long term killer for HNU holders (keeping in mind that anyone who holds HNU for "long term" obviously should not be trading it!).  VRO, and several other energy stocks, have suffered more from market uncertainty than from just the ...more