Q: What are your thoughts on Valeura? Good time to get in? How is it's expected growth looking? Curious about your ideas. Thank you.
5i Research Answer:
VLE has been very strong year-to-date up 137%. The stock had a big jump at the end of November when VLE reported a successful completion of an infill drilling campaign. Production should nicely increase to close out the year and start next year. It has a very strong balance sheet, good management, and rapid cash flow growth. We think it has good qualities for a small cap international oil company and it is very cheap at 6.6x forward earnings. Outlook calls for a decline in revenue over the next few years. EPS is expected to decline 11% next year, but rebound growing by 12.5% the year after.