Drowning in debt Ruspetro (#RPO) secures new covenants on bank debt
- 2015-12-30 02:49:17
UK 11:15 Tuesday, 10 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
If you want me to analyse a stock for you just drop me a line at sqmir@hotmail.com - Today I look at Orsu Metals, Porta Communications, Ruspetro.
A cursory glance at Ruspetro (RPO) would probably be enough to put off a lot of people. The share price has performed badly since the middle of 2012, and although a lot of AIM oil shares have suffered similar fates, Ruspetro has shed over 90 per cent of it value in those two years.
Fully listed Ruspetro (RPO) is the sort of company that should be on the cesspit AIM market – in fact its track record to date would put even parts of AIM to shame.
Apparently 9 days ago when shares were 36p I suggested that they were a buy with a 50p target. As things turned out on Wednesday they peaked out at 49.63p, a third of a penny short of the target.
The basic charting message is never recommend a stock or market against the direction of the last gap. This lesson has been served up by such luminaries such as Centamin (CEY) and Ocado (OCDO) in the recent past, where going against their gaps higher would have led the shorts to a very sticky end. So why I am recommending Ruspetro (RPO) as a speculative buy against the direction of the unfilled February gap to the downside.
Russian Oil producer Ruspetro (RPO) has served up another shocking statement this morning – its habit of delivering nasty surprises does not change. Having advised a short at 83.5p on January 4th I suggested on 25th of January that having refinanced its debt it was “merely one to avoid.” The shock today is that it has decided not to refinance its debt or to undertake the partial debt for equity swap announced on January 25th. This leaves its cash position looking very tricky indeed and at 50.5p the shares are once again a sell.
Russian Oil Producer Ruspetro (RPO) has announced a partial debt for equity swap and refinancing of its remaining debts. This is good news. However before those who ignored my advice to sell at 83.5p on 4th January after an almost comical well after hours profits warning start to celebrate this company still faces serious issues. The shares have bounced back to 49.5p but while they are no longer a short I would still regard them as one to avoid.
Ruspetro (RPO) has already served up a profits warning in 2013 and for its timing as much as its substance it is already in line to win an award for the biggest shock of the year. The shares closed Friday at 83.5p, valuing the firm at £278.4 million but given that the release went live at 6.30 PM the stock will be hit hard on Monday. At what point should you buy if at all?
