Where does it say that they are doing another analyst trip ? What was the result of the last one ? Why don't the analysts that RRL currently pay produce a valuation / target price ? They keep saying under review, because their methodology would say that the SP is above target. The analyst trip will be beneficial for Land Ocean. Malcy is an irrelevance, he's paid to say what he does. Hoe does he earn his money?
The accounts will always show that future oil revenues are needed to repay debts, leaving limited free cash flow. Remember LO announcing the contract was worth $400M over 8 years.
As RRL have said this week, depletion is so high the dependency on water-flood is significant for cross subsidy of conventional drilling costs.
Touchstone, who are probably the best land based operator on Trinidad are a good example of the real costs of drilling on the Island, hence their low MCap.
LO are already publishing the revenues they are generating from RRL as they have to produce a balance sheet every quarter and revenues are recognised. RRL are only required to do so every 6 months. I suspect many are matching the two as LO is so dominant in RRL, albeit there is a weak attempt to hide this by referring to them as Range Resources Drilling Services.
RRL’s accounts later this year will show a significant fall in NAV as the liabilities will have to be shown, with no corresponding revenue and the value of reserves based on under $50. I suspect that shrewd investors will not buy at higher than the NAV per share as this is a production company with limited upside, rather than an exploration company such as FRR.
I was very particular to include the last line that my figures were based on the last year so pointless going back through the history to 2011. How long have you been on this LSE BB? Now here is something you are not normally familiar with - an honest statement and you can print it off and stick it where ever you like. Yes. I have been in the days since not only 16p but 20p although I never paid that amount. Yes. I have bought and averaged down and my average is now below that of the Directors. So now everybody knows if the price goes above .8p and I say I'm in profit then I have already stated my average is below that. Now on the other hand if I use your method I'd just babble away and tell everyone as you have a history of doing so that you bought at the bottom and sold at the top. The only difference is that unless we drop to your much proclaimed drop to .1p we know the truth
You have been here since June 2011 at an SP of 16p and post exclusively on RRL. The price has since fallen 96.8% almost a total wipe out. I have no doubt you have averaged down and the price never rises above your average, throwing more money to Lanadu and now LO.
On the other hand, LGO and TRIN have rewarded with me with over £350K. A total wipe out of FRR such as you are nearing in RRL, would still leave me in profit.
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.