Vermilion Energy (vs A.I.)

Before we start talking about energy-related investment opportunities, let’s get up to speed with the AI/Semiconductor complex and the AI-induced craze in the markets currently.

The two pieces below will give you great situational awareness about where we are in the cycles of:

• Passive & Index investing
• Big Tech
• AI & Semiconductors

Downside at NVIDIA (and the Nasdaq at large)

“Before we work on artificial intelligence why don’t we do something about natural stupidity?” —Steve Polyak

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Is the Nasdaq in a Reflexive Bubble?

Last week I wrote a small piece on the rush into A.I. — backed mainly from VC money. This was triggered by the launch of Chat GPT near the end of 2022, and by the effect the launch had on A.I-related share price valuations. The A.I. rush had begun then and there.

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Further Reading

For those of you interested in the offshore sector, I wrote a piece on Transocean last year — the stock is down 34% since then and I decided to open it for all readers.

Why I don't like Transocean.

In late 2021, I wrote about Valaris - the result of the merger between Ensco and Rowan. Ensco had already acquired Atwood Oceanics in 2017 — so the combined Valaris is made up of Ensco, Rowan and Atwood. Severely hurt from the 2014-2015 oil price bust, the offshore drilling sector was dealt a final blow when Covid-19 struck in early 2020. In August 2020, Valaris filed for bankruptcy, but after its restructuring now operates with a net cash position.

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Now let’s look at Vermilion Energy — printing free cash flow, repurchasing shares, paying down debt and increasing its dividend payout slowly, slowly.

I have previously written about Vermilion Energy here:

Vermilion Energy (VET)

Philoinvestor is an investment and lifestyle newsletter. Most of the content is free. Foreword Vermilion Energy, trading in Toronto and New York, is a Canadian Oil & Gas company established in 1994. The company has gone through a number of ups and downs, even once converting into a trust and then converting out of it!

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Updates on Wayfair, Farfetch & Vermilion Energy

For those of you in need of motivation, I have written a number of Education & Mindset essays on investing which I have curated here: LINK In the meanwhile I am working on a series of essays on the global monetary system and its current dynamics. These themes reinforce each other and could culminate in significant developments with serious repercussions in a key area of investing,

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DOWN 62%

Since its August 2022 peak, Vermilion Energy is down 62% and currently selling for ~$2.4bln (Canadian $). Vermilion has a double listing, trading on the NYSE and in Toronto. The former trades in USD and the latter in CAD, don’t get confused when you search for the stock!

Why so much hate?