Regal Partners Ltd V.RPL

The next year

[hawk35]

Regardless of who wins in January, the SP won't be going anywhere for at least a year or two.  Another stock I just bought in December (spyglass energy) suffered from the same negative press that RPL now is getting.  Spyglass was formed in a merger of three companies early this year.  Unfortunately there was division and a proxy fight that tried to stop the merger.  The merger won out only after delaying the vote to drum up more support but the SP dropped from close to 3.00 to about 1.50 and is now around 1.75.  They have great assets, good driling results, high but manageable debt, non core assets available for sale and a divi yield that is too high but seems sustainable for the next two years.  Because of the messy proxy fight the market in general  is negative to this stock until management shows they can execute.  RPL will go down the same road with SP staying around a buck for at least a year regardless of who wins in January.   It takes a long time for the market / analysts to forget and build confidence again.