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Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s):  RECAF | V.RECO.WT | RCNWF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. The Company holds interest in a petroleum exploration license no. 0073 (PEL 73) in northeast Namibia and an interest in petroleum exploration rights in northwest Botswana over the Kavango Sedimentary Basin. The Company's exploration license covers an area of approximately 25,341.33 square kilometers (km2) (6.3 million acres) of oil and/or gas exploration properties comprising Blocks 1719, 1720, 1721, 1819, 1820 and 1821 situated in the Kavango Basin of northeast Namibia (the Namibia Licensed Property) and approximately 7,592 km2 (1.88 million acres) in Botswana (the Botswana Licensed Property). The two licenses together comprise over 32,933 km2 (8 million acres).


TSXV:RECO - Post by User

Comment by Seraphim1on Jun 10, 2021 9:52pm
256 Views
Post# 33370294

RE:RE:RE:RE:Warrants vs Stocks

RE:RE:RE:RE:Warrants vs Stocks

If you're buying 1k shares or 1k warrants, the warrants are more cost effective from a capital loss point should the story fail. Since your investment is ~1/3 of the cost of shares. 

But that's not going to happen 

So When the story is a success and shares go to $20 the warrants will most likely shoot up proportionally.  

Let's say you buy1000 shares @$9.00 or 3000 warrants for $3.00. You spend relatively same amount. If the shares jump to $20.00, it's probable the warrants will jump to $6.00. So you double your investment regardless because the warrants are tradable and do not have to be exercised. 

But if you're not selling your warrants and the stock goes to $100.00 then who cares about the $14.00 exercise cost. The bang for your 3000 warrants will far exceed the bang of your 1000 shares. 

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