Venoco, Inc. (NYSE:VQ)
An independent energy company primarily engaged in the acquisition, exploration, exploitation and development of oil and natural gas properties.
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Recs
buyout at 12.50 within 3 months prob.
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oil and gas play
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Covestor Model Manager D5 Advisors bought to Cover VQ in his Oil and Gas Producers Covestor Model ( http://covestor.com/D5-Advisors )
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Company is selling its lower producing assets and raising its investments in higher producing assets. It is well managed and hedges future revenues. It is losing money now but will turn around in a year into profitability.
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CEO just stepped up to the plate to the tune of 750,000 shares on 12/9/2008
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One sixth enterprise value, one fifteenth NAV, hedges are currently 60% above current oil price
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Oil/Gas turnaround story, just announced an eps beat of .33 vs .21 on 3400% yoy eps growth and guided higher again. Low p/e of 23.
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With prices of gas, you know these people are busy. Until we switch over to alternative energy, these guys are necesary. Underpriced.
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This small oil company is beaten down with the whole market. This looks like as good a time to get in as any.
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Just look at these numbers
BLOODED:
P/E Ratio: 96.59
FUTURE ISN'T LOOKING GOOD:
EPS (MRQ) vs Qtr. 1 Yr. Ago -869.51 DOWN
EPS (TTM) vs TTM 1 Yr. Ago -63.78 DOWN
EPS - 5 Yr. Growth Rate -1.11 DOWN
NOTHING TO SHOW FOR IT:
Dividend Yield - 5 Year Avg. 0.00
Return On Assets (TTM) 0.51
INEFFICIENT
Net Income/Employee (TTM) 20,128 LOW
Revenue/Employee (TTM) 43% of what the industry generates -- LOW
At $21.24 is too high , too risky .. not for moi
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Track Fortis: Recent drops in gas prices has not severly impacted Veneco's value. High P/E ratio with an uber cap and good volume.
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bofa
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Venoco, Inc. is an independent energy company, primarily involved in the business of acquiring, exploring and developing oil and gas properties in California and Texas. Its exploration operations are carried out in three properties that include company’s California based offshore and onshore operations, which together have a proven reserve of about 100,000 Million barrels of oil equivalent. Venoco’s core revenue operations involve sale of oil and natural gas, although company also hedges their positions in derivatives market, hence the revenue tally also consist of substantial gain or losses from volatility in commodity derivatives prices.
The short term performance of companies like Venoco is largely influenced by oil and gas prices. This has made very difficult for oil and gas companies to deliver strong performance especially in case of falling or highly volatile commodity prices scenario. Still Venoco is currently witnessing a rapid growth, with revenues rising more than two folds as a result of acquisition of TexCal and improved daily production led by ongoing field development. Similarly net income is also observing phenomenal rise as the acquisition synergies and field development are having a positive impact on the margins.
Looking ahead in 2007, Veneco’s credentials look very exciting, as natural gas consumption expected to grow by 900 billion cubic feet as a result of renewed demand from residential sector for heating purpose and heightened industrial usage. Moreover oil prices will continue to climb upwards led by various production cuts announced by OPEC. Moreover, company’s ongoing field development will continue to provide operational and production enhancements, while the recently acquired California Fields will further improve its reserves and aid company to deliver yet another strong performance in 2007. Further the most of the oil and gas productions are hedged by company at a very alluring rate in the commodity derivatives market, additionally the recent drop in the stock prices provides a good opening to invest on Venoco.
Recs
Undervalued at IPO, minimal decline during fall in oil prices, will outperform.
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