Vero Energy Inc T.VRO

$2.00

[filefish]

Vero now at an enterprise value of $250m. Market value $100m + debt $150m = $250m
Thats $26m / flowing boe based on 9,600/boe/d production.
Why would anyone drill if they can buy production at this price?
This is nuts!

[bigbab]

please elaborate...because I'm starting to get VERY worried.....about Bankruptcy ........what are normal metrics?txs B.

[filefish]

In normal times, the valuation metrics might be in the range of $40m - 60m per flowing boe, depending on the gas/liquids mix. However these are not normal times.Keep in mind that enterprise value already takes into account comapny debt, so that why the 26m seems so low.There are lots of other factors, including current cash flow, structure of the debt covenants, mix of production that

[bigbab]

..well isn't that the problem...that NO ONE is stepping up on the open market and buying shares? ...The stock has free-falled to an ALL TIME LOW ...and yet mgmt and co. is unable to entice new investors.  IS that not a reverse vote of confidence?anyways...board of directors...... yeah good one...and where might we see these comments?   

[filefish]

Correct, no insider is buying, but then no one is selling either, so far.About the closest thing to a subjective comment from management about the stock price came at the end of the last First Energy conference presentation where Doug said, off script, something to the effect there was a lot more value in the assets of the Company than the stock price was reflecting.  

[Baxter4]

isn't the Chairman of the Board Paul Baay, the one who drove True Energy Trust from $12/unit to 70 cents. Fortunatly new management came in and they now are back up to the $5 range. Vero have a lot of Cardium lands so I believe they will recover, it is just a question of how low it will go first.

[filefish]

Yes, our chairman is the  same Paul Baay who oversaw the rise and fall of True Energy..He had a propensity to overspend at True and the same financial  imprudence  has been occuring year after year at Vero, under his Chair.The Board of Directors are responsible for approval of the company's capital budget, so they must be held accountable for excessive