Buying Opportunity While the same cast of characters start running when there's news of a pp, it's time to back up the truck. The panickers are taking their profits now.
Look at the terms of this deal. The private placement investor pays $9.50 a share, a dollar more than today's price and they get a HALF a warrant for each share exercisable at $14; in effect, a long-term call option at $14, double the current price. I'll be happy as a pig in you know what to see the share price at $14.
As far as I can tell, nothing, other than the pp news, has changed the fundamental value of RECO. All that has happened is they are taking in a sh*t ton of cash, with more to come when the stock goes over 14.
Diluting something that promises to be so huge is of zero concern to me.
Of course, this is not investment advice; it's only an expression of how I feel about RECO.
Oil is up; gold and silver as well. What a time to have oil in the ground as inflation marches on.
Lastly, it's not just on blind faith I'm making these purchases; we know there is a very large basin that is characteristic of other large finds and RECO has already found oil. Sure, there's always risk with every purchase and I'm willing to assume those risks and soldier on.