Corporate body language: hints at a POWERFUL RALLYI have been reading the tea leaves of RECO'S corporate body language. I do not know why, but I find their corporate language very telling of what is coming in the future.
What I have gathered from them is that they will be a POWERFUL RALLY in RECO stock soon.
These are my reasons:
(a) Maleki Agreement
Eskandar Maleki was disgruntled with Reco's buyout of ROE. He felt that the purchase price should have
been alot higher as no consideration was given for the Mexican assets. He had invested in ROE for the
Mexican assets. He was so disgruntled that he petition the court to stop the buyout of ROE by RECO.
Before trial RECO reached an agreement with Maleki, they gave him 1,200,000 options that will vest
immediately for some consulting work. This deal alone was worth $ 12 million to Maleki.
In addition and this is the key powerful corporate language hint: Maleki agreed to accept 1,800,000
warrants at $ 12 per share.
A disgruntled investor would not agreed to warrants that are out of the money, as potential payment and
compensation for the loss of the Mexican assets which RECO is getting for nothing. A disgruntled
investor would only agree to drop his lawsuit and accept warrants out of the money, if he was given some
sort of assurance that RECO has commerical oil. Remember that results from hole 6-1 are pending. This
does not mean that they are unknown and Maleki would know. Hence, this is why he willingly agreed
to the bulk of his compensation in the form of warrants. It means he sees the stock price way above the
$ 12 per share, more like in the $ 40 to $ 50 per share level and, within months....
(b) Core Labs
In its earnings releasem a poster gave a link to confirm that Core Labs was gloating over their work with
RECO and, they stated.......it is a BIG BIG BASIN.
I presume that Core Labs does work for many companies so why gloat about a particular one unless if
it was so huge and so successful that you want your name on it and, you want further work. And they
divulge that it is indeed MARINE ROCK, which is the best rock you can have as it means that the plantkon
plants would have been crushed under this marine rock and, are now in the basin = our source a oil
You would not gloat about something that is a failure. They know the core results so the gloating hints at
a pending POWERFUL RALLY in the RECO stock.
(c) Africa news
A poster gave a link to an article in the Africian newspaper, where it speaks of Nambia becoming a
superpower in the field of oil and, attending a conference on oil in November 2021 which is attended to
by the majors. The article specificially gives a source for this excitement and, it names RECO.
The core lab results are in the government hands awaiting approval. The article have govnt
officials speaking of becoming a superpower. Another person who is gloating....
Would the officials speak like this if the core lab results were poor? No. Body language speaks of
success. Hence another hint of a POWERFUL RALLY pending for RECO.
(d) Reco press release
The latest press release stated very clearly: BOTH WELLS WERE SUCCESSFUL
You would not use the word successful if you had not found hydrocarbons. It would be a failure.
The word successful means you have the oil, another hint that a poweful rally is pending.
Then we add that Mark Gerlitz who is a hostile negotiator and wanted more warrants instead of $$$ and, he got them as payment.
From looking at the chart, we have consolidated over the last month and are now ready for another rally.
I see first target to be hit is: $ 16 per share, then more upwards and march towards the $ 20 per share level.
mpo