Vermillion was one that attracted a lot of investors due to its high yield. But as we can see now, that high yield simply wasn't sustainable.
We can't tell you what to do in terms of direct buy/sell advice. But, what we can say is that Vermillion IS trading on the cheap right now in terms of historical valuations. In fact, it's almost 30% below historical valuations.
However, there is a key difference here. Prior to the pandemic, many were willing to pay more for Vermillion because of its dividend. Now? Not the case. So I think historical valuations for this company are a little misleading. There's also the fact that many investors have been burnt by Vermillion, and new investors may opt for different oil and gas options over a company like VET.
It's really tough to say. There is upside at today's levels, and it should be able to benefit from a reopening of the economy and higher oil prices. However, I think the sweet spot in terms of upside is somewhere in between its current undervaluation relative to historical numbers and the price its currently trading at.
The company also recently got downgraded in terms of credit rating by Moody's in late March, citing production will decline due to less capital expenditure spending.