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Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRocView Video
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investorsView Video

Latest Share Chat

OsakiSushi on RRL

Wednesday, 26th March 2014 14:19 - by Osakisushi

Once again, I made the mistake of reading Regular Chat following my commentary last week against Savannah. As soon as LSE published the piece, I was subjected to hysterical invective and wryly note the share has done exactly what I had worried about, remorselessly reaching my initial target level. Hopefully the future works out as the longer term potentials remain equally valid.

This weeks horror story is a look at Range Res. (LSE:RRL), a share which deserves an award nomination for having one of the most painful charts on the AIM market. The image below displays the price’ fall from grace in an utterly stage managed process, ensuring maximum pain for anyone involved in it.  Roughly speaking, it was as if someone decided the share was going to lose 12.5% of its price every month.

About the only nice thing I can suggest is anyone capable of scribbling a BLUE line such as I’ve done will be able to predict when the price stops falling. Currently, it needs exceed 1.175 to break above BLUE and I’m not seeing any early warning signals for optimism.

My worry with this share is we’ve only one ‘last chance’ level left and it’s at 0.43p. We are unable to calculate any bottom target below this point. My company used to run daily outlooks against this share’s price but when it fell below 1.225p, we opted to place it on the back burner as, from our perspective, it became untradeable.

And now for the funny thing. This sort of nonsense with a share price can often be reversed rather quickly. I’d guess some extremely positive news would be required to ensure RRL managed to close above BLUE but once the share is in such a position, ongoing encouraging news flow and sentiment could easily drive the price to 4.5p.

But for now, it stinks and about all I can do is hope for a bounce from the bottom target!

 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.

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