RNE：multibagger target in next 6months

RNE just settled down existing projects and seeking merger/acquisition opportunities adviced by KPMG corporate finance.

This company is now debt free and got $265 million accumulated tax loss which was valued worth $7.2m or 6c per share for the tax benefit once a proper merge happens. （broker’s valuation) ($76m tax benefit at corporate tax rate 27.5% as newly released financial report)

The company has only 106m shares on issue atm. (14m shares will be canceled) Personally, I believe the small MC, limited number of shares on issue plus huge tax benefit， will finally attract a large scale energy company’s interest to acquire/merge for the tax /ASX list purposes.

The SP jumped from 2.4c to 5.9c on 17 Sep, speeding ticke then issued. The company replied 1: admited one transaction been in discussion at early stage 2: once successful, it will significantly change the business.

Guess a profitable and world class technology based energy company will merge with RNE in next 6 months, this is also what RNE is seeking and announced to the market.If quality of the new project is excellent, the SP of RNE has 10 baggers potential from 2.4c to 24c per share, just personal thinking.