Reconnaissance Energy (Africa) Ltd V.RECO

rennaissance is a bargain

[grenouille]

i just picked up a few thousand more renaissance (roe/rnsff) shares @ (u.s.)$0.27xx.

if the bought deal goes through (likely), i just bought more reco/recaf at yesterday's prices.
if the bought deal doesn't go through (unlikely).

what's not to like???

[Buyhigheatchips]

The deal values the shares at 35c Canadian. It's already there.

[doggiestyle]

??? Its a share swap at .046

[grenouille]

for a little while there, i could (and did, thousands) buy 0.046 share of reconnaissance for (u.s.) $0.27xx. now i can buy 0.046 share for $0.32.  the market has figured that one out, but for a little while there was a window of opportunity to buy reco/recaf at yesterday's prices.  the window has closed.

[doggiestyle]

Its still %10 lower on a relative basis at .046

[Matteo1234]

It's a no brainer now. Buy ROE sell RECO.

[doggiestyle]

I agree. Its a no brainer -  the %10 delta has to close eventually no matter the share price is at.

[Matteo1234]

ROE should be @ .043 cents. Quick .05 cent profit in real time

[crude]

if you hold  or buy below 0.40 you get free shares !!!

[InvrsContrarian]

And the market will behave for you. Not in today's atmosphere of catching a soap bubble to show your Mom and dad!

[Buyhigheatchips]

35c. Are you guys misreading the NR?

[Matteo1234]

As far as I understand the news release. RECO wants to aquire ROE for it's land rights. ROE shareolders get .046 a share of RECO. At $9.00 X .046 = .042 cents a share. Why is it trading at .033 cents. Does anyone have an answer ?

[Chas15]

Go to the ROE board and find out big guy. Catch up. 

[Ozjaykay]

Exactly my question too! The current delta seems too good to be true.... and we know the standard answer to that. I'm confused...

[wmstock]

Considering what's on the table and the price difference from roe and reco, it's a no brainer.  Buy ROE which I just did.  You get 0.046 of reco shares, which puts roe at 0.40 if reco is trading at 8.69.  Reco is trading at .34 that's a 6 cents difference.  Roe will catch up soon, buy in before it does.

[TurnToTheRight]

I would guess because the news release specifically states the LOI is non-binding, therefore it's an indication of intent, but if it's not binding there is still risk that the ratio is not set in stone (which it isn't - it's basically not even worth the paper it's written on). It's not even really an enforceable contract - an agreement to agree at a later date is not a

[Goaweigh]

Maybe the market is considering the possibility that the RECO shareholders might vote against the merger. The thinking might be " Those ROE clowns haven't found a drop of oil yet so why should we pay $ 155,000,000 for moose pasture, or maybe camel pasture in this case " Just a thought !

[Ebenizer3]

well after 30 days steinke can sell roe to lukoil, china, goldfinger, bugs bunny or whoever. lol but I think he knows the founder of reco lol. Apparently not much due diligence in the stock market these days.

[Matteo1234]

At 11 % of the interest in the area. ROE is worth a lot more than .046 a share of RECO. Shareholders can ask for more

[scatman]

ROE has no money and $155MM is a far price per acre. This way, ROC shareholders benfit from both their acreage and RECO's discovery, their drill - without dilution. makes sense to me.

[CoreyB]

Because the deal was made at a certain price for each company, but the news has pushed it up today so it skews the numbers everyone is jabbering about.  Basically if you sell some RECO at current price and throw that exact money into ROE you should be ahead of the game a handful of cents per share, provided the deal doesn't fall through or anything else happen to cause prices to change

[Ebenizer3]

i see it as a consolidation of the botswana stake. Since the nr roe's volume has exploded, if someone wanted to make a play on 50% of botswana buy up all the roe u can get. The LoI makes it clear reco not going to let that happen.