Really...RCT, on today's US pink-sheet exchange, closed at a price lower than I have ever seen it. I don't know if all of the almost 20,000 shares traded at the closing quote, but if they did, the value of the sale was a gross of about $32. What does it mean, and why would someone execute such a transaction?
Let's assume the worst: a frustrated investor is so fed up they want to send the message that they are convinced RCT has such a small chance of going up from here they'd rather have their $32 than hold 20,000 shares of RCT.
If this were, in reality, an accurate accounting for this trade, I would then be compelled to state the other side. (Reality, or not, I'm going to state the other side anyway.)
The reason I'm holding RCT is because I believe RCT will report better numbers this coming report. Could I be wrong? Sure. This industry can have all sorts of risks that can impact a quarter's production.
RCT is a spec play, which means the risk is high. However, the reasons for holding RCT are that it just increased it's tons of ore processed by a decent amount with the potential for even more tons processed in the quarter directly ahead, and I think for this quarter the grade of the ore will not be off, like it just was.
I also think the price of gold is going up. That is an entirely different discussion, but I have always been one to recommend holding gold and gold securities as investments. Did I say for the last 3 years the gold market has handed such as myself their heads several times? But the test for any investment is to ask oneself, would you spend the same money on the same thing today? I would. I think gold investments are a very good buy right now.
Management has been working this thing for a long time, with much of the debt owed to principals in the company. It never hurts to have friendly creditors. I was a bit dramatic saying RCT's survival is in question if they don't have a stellar quarter this time around. There is probably much they can do to keep the thing going beyond what they are doing, but it is looking pretty ugly on paper at this point, specifically what the interest on the debt is costing.
For the longest time EL had no significant debt, but that has changed. In any case, I'm still holding, waiting to see what kind of grade is going through the mill when it runs nonstop at full capacity for a quarter, and a better price of gold would make such an eventuality even more beneficial to RCT's revenue/profit.
Granted, based on the history here, getting these things happening all at once might take an eternity, but it could happen. That's why RCT is a spec, and in the context of the current world affairs, and the development of RCT's operations, I think a pretty good one.
Provided everything is on the up and up, and EL is a man deserving of the honors cited in his resume, I'm willing to pull for RCT's success.