Upside potential is much greater than downside for a multitude of reasons: - Stock price followed a downward trend - negative news were overcompensated - Due to dilution EPS will be significantly down in FY 2020/2021 but it is no rocket science to know it will be up in FY 2021/2022 when Tropicana proceeds will be fully on line - Quite a bit of potential good news in the pipeline such as McPhillamys.
But of course the most substantial factor is gop. If it goes up the stock will go up. If it doesn´t it will still go up but far more reluctantly.And if gop goes down RRL would go south as well. But IMO that is not likely given negative interest and inflation environment.
RRL Price at posting:
$2.56 Sentiment: Buy Disclosure: Held
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