Q: At this extremely low valuation ,do you consider this stock as a hold ,sell or a buy ? any comment on this Cie 's future perspective shall be greatly appreciated.Ps: I am wondering if the restrictions on Russian oil and gaz could significantly favor energy Cies active in western Europ ( like VET ..) , in order to compensate for pipelines and energy suppressions, thanks , J-Y
Europe has positives and negatives, but VET is well-positioned. The stock is very cheap and has re-started its dividend. The balance sheet is in decent shape with debt at 1X cash flow. Insiders own 3%. Estimates call for a slight decline in cash flow this year, but this is mostly commodity price related. The last quarter was mixed. We think it is buyable due to its very low valuation. Europe represents about half of revenue, so it is strategically advantaged, even if on shipping costs, if restrictions continue on pipeline access.