GREY:RNSFF - Post by User
Post by
countrysquireon Feb 21, 2018 11:09am
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Post# 27594101
Long view
Long viewToday's price is where ROE was in Dec. 2015 before the first auction. Of course, the market cap has since increased due to dilution, but that isn't necessarily a bad thing long-term. You gotta have cash.
ROE won four blocks at that auction in 2015. Price stayed the same. They added Amatilan. Massive! Price stayed the same. They got licenses to rework some wells and drill 10 new ones. Price stayed the same. They found pay sands in the first two vertical wells. Price stayed the same. Malaki jumped in, and somebody that rich wouldn't invest in something which didn't hold promise for a bonanza. Price stayed the same.
The only jumps, and they were temporary, came with increases in production.
What that tells me is 1) the market will only respond to increases in production and 2) the company has been steadily accumulating long-term value that simply isn't reflected by the stock price.
Now, it appears probable that whatever production increases are happening will be concealed for some time (acc. to MajorityMob's good post) in order to not cause a bidding frenzy on blocks ROE wants to win this year. That is more delay--but so what for long-term investors?
The company presentation remains the same, and lays out enough basics to make one salivate:
--Great technical team
--Great land base with oodles of oil in place--no debate there
--Experienced management team
--Two billionaires on board, Telfer and Malaki, both with valuable experience and a lot of skin in the game
--No debt
--Cash on hand
--Long-term perspective on building value
Although we're probably stuck at .25 for the next months (I don't know TSX's regulations on disclosure of material information--does anybody know?), I think I am getting a lot more for my .25/share now than I did in 2015, dilution non-withstanding.
Appreciate all comments. Even comments which prove erroneous, or and needlessly hostile, end up teasing out new information.
Some questions for the wise men:
What would a good conventional well, such as they are presently drilling, produce--100 bpd? 500 bpd?
How long can the company keep quiet on production increases without getting in trouble with TSX? Indefinitely?
When are the next auctions?
Keep the faith. For a penny stock, ROE sure has the feel of a value play.