Another great session overnight with REN closing up almost 15% - Aud equivalent of $3.58.
The thing I was most concerned with after RLT had such a big increase yesterday was that REN would open low enough that an arbitrage opportunity would present to buy REN shares at enough of a discount they could easily be dumped on RLT today.
The good news is the lowest REN hit in the session was the equivalent of $3.46 aud. That's too close to our current sp and I believe too much of a risk when factoring FX and liquidity. So I'm not expecting any arb games this morning.
After a stellar day and plenty of info to get through from yesterday I finally had a chance to digest it all and I can say I'm even more excited today than I was yesterday.
There's been a lot of speculation over a possible connection between Elon and Renergen. Whilst I'm not holding my breath theres certainly a strong enough case for this connection to come to fruition.
For starters it helps that both Stef (our CEO) and Elon are not only fellow countrymen but actually went to the same school in SA.
Elon definitely needs helium and yesterdays ann confirmed that Renergen have a 'world class resource' - those numbers will make it hard for competitors to undercut us as our grades are multiples of many other producers
Stef's recent trip to the US may have added a little more weight to that connection when he had a stop over in Texas - both Tesla and Space X have facilities there.
Elon obviously is known to be one of the most influential figures in crypto markets so I found it funny that Stef announced Renergens groundbreaking move to create a helium spot market via blockchain just
after his trip to the US...
Obviously all of that is merely speculation and may never play out however there is one other thing I noticed that Stef seems to have taken out of Elons playbook. And that's his remuneration package.
I'm not saying Stef got on the blower to Elon to chat about it or in fact Elon had anything to do with the structure whatsoever but Stef is a very smart guy with a finance background so seems he's smart enough to have taken on a bonus structure that is both beneficial for himself and more so, us shareholders - very similar to Tesla.
At one stage Tesla was the most shorted stock in history but what those shorters didn't take into account was Elons remuneration package. So many people still scratch their head at how Elon has got Teslas MC above almost every other major automaker combined. Once again look at how Elon makes his money and theres a lot attached to that bonus structure.
You see Elon receives a bonus each time the MC hits a certain figure and maintains that for a period of time (6mths from memory). With so many large funds and banks profiting from an increasing Tesla sp I'm sure he's had plenty of 'support' to keep it climbing. To the point where Tesla now has a MC of over $1 trillion!
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So whats that got to do with Renergen?
Renergen will reward directors in a similar fashion by having share price targets for each bonus level to be executed.
As you can see below the current targets will be hit starting from a sp of around $6.50 up to the high target of $13 (at current exchange rates).
Watching Stef yesterday discuss what the new numbers could mean for our sp and he was very clear on the low side target being around $7 and the high side numbers getting the sp to $40.
Having bonuses set only up to $13 atm I'm more than confident Stef and the team will have enough motivation and the right resource to hit all of these targets with ease.
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Yesterdays ann was phenomenal, however I have a feeling we are still only at the very start of this story...
DYOR
GLTAH
(20min delay)
