Sorry all, but I am getting sick of all the negativity.
In September 2011, RRS spent $2 million on a future potential gas and oil fields. The difference was this was via the purchase of TPT @ 40 cents a share. The current price of TPT is aproximately 50 cents. That is an increase of 25%. Was the management wrong in investing in TPT? Of course not.
The same analogy can be applied to the offshore and Colombian assests recently acquire. These could be very valuable assests. The only question that needs to be answered is if they are worth more or have the potential to be worth more, taking into account the cost of time, than the shares issued. Yes, there may be more shares but it is easy to envision all the shares in RRS now have a greater asset value. Isn't that we all want?
Yes, we want more. We want any increased asset value behind each share translated into the share price. That will not occur if commentators and especially shareholders, continually believe the purchases RRS management are making are worth less than they paid for them.
Therefore, forget dilution. The only question that needs to be answered is has the net asset backing per RRS share has been increased becuase if the market is efficient (LOL) this should equate into a greater share price, no matter how many shares there are and I want a higher RRS share price.
Cheers
RRS Price at posting:
20.0¢ Sentiment: None Disclosure: Held
