RRS range resources limited

relative valuation vs rmp, page-5

  1. 201 Posts.
    Smart,
    Very interesting comparison to a casino when comparing RRS and RMP
    Let me first start by stating I hold both RRS and RMP.
    I have been reading your posts on Hotcopper and other BB's in the past since I started investing in RRS last July when the T&T news came out, however you have been holding RRS/RRL since the 3p days.
    I have on many occasions specifically sought advice from you and you have always taken the time to respond to my enquiries for which I am very grateful.
    You have given your opinions on all aspects of mine or anybody elses enquiries and also given your reservations in the past, quite strongly as regards to Puntland and Timescales. I know your initial target exit price has increased because you told me so and that you no longer have a specific target price as yet.
    Basically what I am trying to say is that, most of us are still invested in RRS/RRL because we feel that the SP will be much, much higher even before the drilling has started in Puntland or Georgia.
    Secondly, how many Oilies do you know of at the moment, who are drilling their prospects after having a positive Helium report supporting the seismic results.
    It was after all you who told me that the chances of success increase from 1/5 to 4/5 if the helium results are positive.
    Whilst I agree with you Smart that investing in penny shares, AIM shares is a bit like going to a casino. I think you have chosen the wrong game for RMP. RMP in this instance should be compared to Blackjack, where RRS/RRL are sitting in the chair(having done the seismic and the helium tests). RMP is standing behind them, two Aces are showing, the dealer who has dealt himself a "five" wants to know if we want to split the aces. At this very favourable stage RMP have put in their stake plus the additional RRS stake and the card counter (the helium results) is suggesting there an 80% chance of hitting 2 picture cards to go with the ACES. Now, if one or both picture cards don't come, then that's life.

    Smart, most people who have bought RMP have probably been in RRS from the early days and have probably already 6-7 bagged. It would be stupid in my opinion to leave everything still riding in RRS/RRL and not put at least 1/3 in RMP. Because the mere fact that anybody would
    still be invested in RRS/RRL is because they believe in the future success of Georgia and Puntland.
    Finally your post today regarding RMP is a contradiction of your post from yesterday when you suggest that a PI with limited funds should try and go for a company that has the potential, hasn't started drilling, 10% of a small amount is a small amount etc etc.
    Smart, with all due respect, I have to concur with Gabeh in this instance with regards to your bias slant re:RMP.





 
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