Do I think Range Resources (RRL) is overvalued ? Yes. Where are the shares going short term? I am not sure.
Pete Landau, the head honcho at Range Resources (RRL) has been busy emailing shareholders about my weekend opus magnus. Good for him to come out fighting. Low life CEOs would resort to hiring bully boy City lawyers to try to gag me. Landau seems happy to debate the facts. For that I really do give him full credit. Pete: you are THE man!
As the late great Max Bygraves might have said, I wanna tell you a shtorrry – and this tale comes to you all the way from Central America. Read carefully for it is a bit complicated.
Range Resources (RRL) shareholders have just voted through the annual report giving their approval on executive pay. Hmmmmm.
I had never done a spread bet in my life until Monday. However, I am challenging Steve Moore to a trading challenge to run until Christmas. And I have just completed my third and fourth trades. A bit odd but let me explain.
I was sitting down with a pal last night and we were trying to work out how much cash Range Resources (RRL) has left. I think the answer would not make pleasant reading if you are long. I am short and cash (or lack of it) is why.
It has been easier to give the benefit of the doubt to shares in Range Resources (RRL) in the recent past than to be a bear, if only on the basis that you know most of the diehards of this company will never give up on their chosen favourite and therefore this is what most readers want to hear. However…
Well here goes…I had never done a spread bet in my life until yesterday. However, I am challenging Steve Moore to a trading challenge to run until Christmas. And I have just completed my second trade.
If you are a shareholder in Range Resources (RRL) the last year has been a tragedy with the stock slumping from almost 5p to little over 1.5p. If you are merely an outside observer its public statements have been pure comedy. There are many to focus on but as an illustration I confine myself to the issue of its US Assets. Here is the timeframe – all statements below are from Range itself.
Last December 17th I penned an article on Range Resources (RRL) then at 4.86p rating the stock a sell with a 1.5p target price. That piece produced a great response from a Bulletin Board Moron – A certain “Savvyunlikeyou.”
It would be great to be able to stop saying of range Resources (RRL) “sell into strength” but there is no other conclusion. It is not a popular message as most private investors here are currently long and wrong.
Today’s news that the Company is increasing its exposure to the Atzam prospect in Guatemala is a welcome lift for Range Resources (RRL) claims its house broker Fox Davies. In a note out this morning analyst Zac Phillips argues that the deal provides the Company with further exposure to near to medium-term cash generating assets, which in turn will support its development of assets elsewhere in its portfolio.
Range Resources (RRL) has announced that it has increased its acreage in Trinidad by 280,000 acres by farming into Niko’s Guayaguayare block which covers both onshore and offshore areas. House broker Fox Davies says that the farm-in will “provide Range with vast exposure to both onshore and offshore potential and creates excellent synergy between Range’s three existing blocks and the Guayaguayare block”.
Trinidad seems to be flavour of the month for oil juniors but how to play the game? The two obvious candidates on AIM are Range Resources (RRL) and Leni Gas & Oil (LGO) both of which have served up production updates of late – Leni, today. It seems to me that the obvious trade is to sell Range and buy Leni and here is why.
Range Resources (RRL) today announced that its associate, Citation Resources, in which it has 24% indirect interest, has reported the results of its well test on the Atzam #4 well.
Even if I live to be 99 I may still be asking why there was a need to question ask the question “Range Resources: A Buy Under 3p?”
On the face of it we can say that the loss of the initial 3p support level of 2013 for Range Resources in the second half of May suggests that not only is a new bear phase about to begin for this highly followed stock, but that the target is now as low as 2p. But is this too negative view on a company where most traders are long and still expecting great things?
The article dated 21st May contained one factual error for which we apologise. We would like to make it clear that while International Petroleum announced on April 5 that it had secured a $15 million loan it had not received the cash. We apologise for not making this clear and there is no suggestion on our part that announcements with regard to the loan were not made in anything other than an appropriate manner. The original article has been withdrawn.
I posted 8 questions for Range Resources (RRL) the other day. So far no response has been received.
The noise from the non announcements is deafening. The silence on what matters is frightening. What the hell is going on at AIM Cesspit and ASX listed range Resources (RRL). With my call not returned today I guess I have to pose a few questions in print. But if I was a shareholder I’d be shitting bricks.
