MM thoughts on Viva Energy (VEA)

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Question asked 05/05/2021

MM thoughts on Viva Energy (VEA)

Hi MM Team, I would appreciate your thoughts on Viva Energy - VEA. The Geelong based refinery maybe in line for a government subsidy in the coming weeks as well as ongoing growth as we recover and start to travel more post COVID. Cheers Burge

Answer

Hi Burge,

I agree that VEA is another quasi recovery story plus their last quarter suggested improvements operationally across the business. In terms of the Geelong government subsidy it’s not necessarily a reason to buy the stock, it should be more a case of potential cream on the cake aka a company’s possibility as a takeover target. The risk / reward looks ok with stops under $1.80 but as MM is not a huge fan of the Energy Sector short-term it’s not in our scopes just yet.

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Viva Energy (VEA)

LAST UPDATED 05/05/2021 10:32

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