NEW YORK (TheStreet) -- Vaalco Energy (EGY) stock is trading lower Wednesday after filing for a shelf registration which would allow it to sell up to $500 million worth of common stock or debt securities.
By late afternoon, shares had tumbled 9.1% to $7.06.
In its SEC filing, the company said net proceeds could be used for the "reduction or refinancing of debt or other corporate obligations; potential future acquisitions; capital expenditures; and additions to our working capital."
Must Read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates VAALCO ENERGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VAALCO ENERGY INC (EGY) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: