RE:Trader questionIt moved to 90 cents because a lot of people wanted in on the $10 million PP at 70 cents but could not get shares, so they started buying on the open market, but then the PP was increased to $22 million and that filled the excess demand and allowed people to sell the shares back down to 70 cents and buy the PP instead, as it has warrants attached.
But all this is fairly irrelevant, I have traded exploration plays for at least 20 years with a high rate of success, the key thing is to buy early, I started buying RECO back at 50 cents and still added some more today at 67 cents. The question you should be asking is not what is going on this week, but what is going to be going on in several weeks.
In several weeks RECO will be drilling 3 wells in a wholly owned basin that has a reasonably high chance of containing billions of barrels of oil equivalent. When this happens, and other investors see the huge upside and decent chance of success, do you really think that the share price will still be sitting around 70 cents, I think not. I think there is a very high probability that investors wanting to get in at the last minute will bid the share price much higher. Certainly the downside risk is practically nil and so I am loaded and still buying. So do I care about the day to day share price fluctuations that currently happen, well a little, as I can sell a few on big up days and buy them back cheap on down days while still keeping a large core position, but that is it. Meanwhile I patiently wait for the drill program.