It seems to me that " no one at the helm" is a blatant mis-representation of the facts, just because we don't currently have a CEO does not mean that nobody is running the company. Would you also like to explain "broken acquisition strategy" too as so far I am not aware that there is any evidence to support that claim.
The share price has a very high volatility, in part induced by the small trades. On that basis a swing of over 50% is vey probable. Small incremental investments over time will enable me to achieve a personnel target of recovering my losses on RRL, albeit my overall portfolio is in profit. The last swing made a reasonable contribution towards this goal. You have downside protection in that oil prices will eventually rise.
The amount outstanding on 12 month terms, does not look to be recoverable from the production forecasts we have been given. It look as if the Sino/LO funds will appear in time to cover this debt and push out payments by a further 2 years. This is like re-mortgaging to spread your outgoings once you have difficulty meeting your obligations. Short term it looks good because there is no interest on the 12 month terms, but "re-mortgage" and you end up paying more.
It looks as every penny from production will be used to repay debt. This is not good for shareholders, but good for LO who have all their costs covered, make a 15% margin and get interest on the 12 month "interest free" loan.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.