Vaalco has fallen 19% below the price I paid for it. I might have to sell it if it reaches 20%. Besides that fact, Vaalco remains a very good company. They have 72 million dollars in cash ready to be spent on ventures, operations, exploration, etc. The sell-off that has occured is PANIC SELLING!! I'm listening to the conference call right now, and my anxiety has been alleviated. This company has so many prospects for profit, it's ridiculous. They just signed a deal in the UK North Sea, and are quickly developing the Angola and Gabon rigs. They are also opening a new office in Rwanda. Besides the fact these countries have just come out of a civil war, I'm betting these countries have found some stability, enough to do business. I'm very confident that by the end of 2008, EGY will break out. This view is also shares by Vaalco Management. They have said in their conference call that 2008 will be the breakout year for Vaalco, and so be patient. The sell-off in stock is not warranted to the true value of this company. Their balance sheet is solid. Stock buybacks - The stock is cheap! But the management only said they would consider it.If any of you are looking for more risky plays in the international arena, Vaalco (EGY) is a sure bet, a more safer bet (balance sheet). The stock is cheaper than ever. Buy this Lexus for the price of a junker.
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