Chop! Chop! Off with the Snake Head! (VNOM)

Viper Energy Partners (NASDAQ:VNOM) touts itself as a firm that “owns, acquires, and exploits oil and natural gas properties in North America.”

Exploits?

The company’s stock has been in something of a freefall of late, declining by nearly a third since late last year.

But, in our view, that’s looking more and more like just a preview of what’s to come: A DESCENT TO THE BOTTOM OF THE OCEAN!

Perhaps some Fundamentals…?

Thank you, Rowan.

Consider the following—

• P/E is a mere 10.98,
• Dividend Yield is 1.00%,
• Price to Book is 2.72, but…
• Debt to Equity is risky at 1.04, and…
• Latest Q/Q sales FELL by 16.30%.
• More damning than all the foregoing, however, is the fact that insiders have sold 92% of their position over the last six months!  That’s an astronomical $194 million since January 1^st.  But more that than—get this: a full $166 million of that total was unloaded in just the last 60 days!

OH, yeah…

Anyway, latest earnings revisions have all been lower, so things aren’t boding so well for the company.

Not the time to go fishing for turnaround story, we say.

Have a look now at the chart—

As always, G-d help us!

Many happy returns!

Matt McAbby

Follow @HughLOHaynew