Gold in the shi**er, Oil has the glitter RECO is the best speculative opportunity I've seen in a while.
I don't want to count my chickens before they hatch but the upside is ridiculous! Oil is an asset you can count on; there's always a market for it and it looks like the price of oil will increase, especially with a return to pre-COVID normalcy. More cars on the road; more industry; right commodity at the right time.
In a world where companies that deliver sandwiches* are valued at a billions of dollars, I think I'd prefer a good oil play!
*Doordash closed at $187 today and the market cap is north of $70 billion -- and they lost $667 million in 2019 and $149 million in the first nine months of 2020!!
I'm not knocking Doordash because there are hundreds of companies that seem overvalued and you all know the names; their share prices defy gravity. And maybe some of them will ultimately be worth the price they're selling for today.
I guess I've started rambling because the price of other shares seems irrelevant but I think there will be a return to value investing and RECO has a chance to become a major player. What is RECO with -- potentially -- a billion barrels worth? Pick one:
DOORDASH: $187
RECONNAISANCE ENERGY: $4.13