Exactly ByronB. It's not a 1 hit wonder, and there's certainly money to be made if you buy at the right time (and sell at the right time!).
Most private investors don't have much patience though- they won't stick around for future drills and will be off chasing the next share.
That would definitely present a 'buying opportunity'. Not only has Range been hammered by the macroeconomic outlook, it would also have been hammered by a duster (which normally are buying opportunities if one looks long term).
If you buy in at that point, wait for an upturn in the global economy, and Range to start ramping up Texas and Trinidad, there's quite a lot of potential low-risk cash to be made. A drop to 4p could easily be recovered back to 8p (£160m market cap) with the sale of Texas and the expansion of Trinidad, and would represent a very good return for 12 months holding (strictly speaking this should be achieveable in 6 months, but I'm applying PL timescales here- if he says 6 months it means 12). Anyone who thinks a 100% return over 12 months isn't good quite frankly doesn't know what they're talking about.
And who knows, maybe if they do have a good strike on a future drill, profits might be potentially greater than 100%. But I like to look at what kind of return can be made from low risk activities first, such as development of existing assets.
RRS Price at posting:
14.5¢ Sentiment: None Disclosure: Not Held
