That is a good thing if you are seeking value. Why buy when the stock is being pumped? (Maybe that's the strategy of momentum investing that I've never understood) VPI management made a costly mistake with the Genesis acquisition...and they misjudged the political/economoic/judicial climate in Argentina by making reserve purchases until shortly before the devaluation, new taxes, and assorted turmoil. But with Argentina turning more positive and looming ng shortages I like VPI's position and I don't find management's greed disproportionate to the rest of corporate America.
I don't agree with you as far as VPI management is concerned. IMO they are the worst kind of managment a company can have. They have absolutely no concern for shareholders and are only interested in lining their own pockets. Their actions prove it:
First they have run the company into the ground costing shareholders over $500 million in lost market cap over the last 18 months.
This is despite high prices for natural gas and oil. The business climate for oil companies in Argentina has improved greatly since the shock of the devaluation. The share price performance of YPF and APAGF prove it. VPI is under $10 a share and sinking.
Second, they eliminated the possibility of any shareholder getting rid of them despite their rotten performance by instituting a poison pill and THEN had the gall to reduce the trigger point as soon as a threat to their jobs appeared.
Third,and last they reward themselves by converting worthless out of the money options (over $10 out of the money) to some $5 million in stock. Of course they "value" the option by using BS (Should that really be Bull..S... in this case?) options valuation methods, but in reality the options were given when the stock was much higher before they screwed up the company.
It is all legal and a legal ripoff of the shareholders. I wish I could get a job where I do a lousy job and then reward myself with a $5 million payout.
How many normal employees have been given the boot for even doing a job where their results were comparable to the last years'? Yet these yokles at VPI tap the shareholders for a $5 million payout.
Corporate greed and incompetant management are alive and well at VPI.
A disgusting example of the worst of corporate America. We Americans continually boast about how free we are, yet there are companies like VPI that are determined to eliminate the rights of its owners (shareholders) to actually exercise their democratic rights.
No wonder people are turned off by some companies and are reluctant to invest.
Regarding your comment that management has run the company into the ground costing shareholders $500 million in market cap...please remember that management holds a huge interest in the shares of VPI. The fact that other companies with interests in Argentina have recovered only makes the case for VPI being more undervalued now, IMO. We see the situatuion differently...I think management has had a bad few years but the company is well positioned...I'm often incorrect.
Does anyone know just what the percent is of US. Corporations that have Poison pills?? I would think that VPI would be in the company of the minority but unsure.
T.Boone had a good chance to size up VPI and decided to exit. I'am sure he knew more than most of us. and yes things do change but so far I have'nt seen it. Kinda like picking up a fallen knife that landed on its edge albeit teetering somewhat. Csense