RE:RE:Signs of life
As past holder of most every oil and gas exploration stock I can find, OYL, EOG, AOI, VLE, and RECO, plus many many more I would point out that management of RECO are not the ones that pushed the price to a $2 billion dollar market cap. it is investors/gamblers who have done that, just as they did with gamestop or bitcoin, one which was close to shutting down and the other which is backed by nothing at all, pays not return on investment and relies on hype to keep the price high. Dogecoin was started as a joke and now has $39 billion market cap.!!!
RECO management had an idea related to the basin in Namibia and so acquired the rights to explore it, they raised some money and had a drill rig built, this is the point where I bought a bunch of shares. The market cap. was nothing spectacular and the investment seemed reasonable to me. Then the drill arrived in Africa and people/speculators pushed the price a little higher, again nothing to do with RECO management, just the story getting out and people liking what they hear,. OK management did help get the word out, after all exploration needs money and exploration companies advertise their properties on BNN and websites every day of the week, how else would they raise funds. The drilling started and the impatient last minute buyers started to buy shares, I sold them some of mine. The all management did was drill the first well and report the results, just as everyone wanted them to. Then investors/speculators pushed the stock to high heights and management issued shares to raise money for more drilling, afterall if people are throwing money at you, you are going to take some of it. All this to say investors not management pushed the stock to its' current price. Normally, I would agree that the current $12 price is high, but after seeing the stock price for GME, Tesla, and many other money losing compnies rocket this year, who am I to say what reasonable prices are anymore. The price of RECO is what it is and only time will tell whether it is to high, for the record I think it currently is to high, but so in Gamestop, Tesla and bitcoin in my opinion, so what do I know.