Two-Year weekly chart:
Accounts related to LOTM have been using the current sell-off in RECAF to accumulate additional shares. Ironically, Environmentalists have said in print they are doing everything they can do to stop Recon from proceeding in Namibia and Botswana because they have found oil and gas in those two countries. There has been, ah, misinformation that has been proven to be false said by a number of pro-environmental groups. There is also a large positioned short seller in the shares that has issued false statements concerning Recon that have been countered with evidence and the backed by local governments involved.
Our thesis for investing is that Recon is in compliance with local laws and Industry Best Practices for protecting the environment.
This is a very large Oil & Gas discovery. Goldman Sachs is introducing its clients to the deal and soon we expect a larger international company to partner with Recon to explore and develop the property. We like the deal and think oil and gas will be needed for many years into the future.
Not for traders or technically focused investors. This idea is of interest to longer-term speculators only. We do anticipate news of a partnership in the coming months that could produce a nice trade.
We are accumulating Recon because of the discount to anticipated asset value of the properties and strong support of local governments.
The market cap of Recon is about $800 Million while the value of the property could be in the tens of Billions.
NEWS:
Traditional Authorities Confirm Support For ReconAfrica Operations in Namibia
9:00 AM ET 10/29/21 | Dow Jones
NATION-WIDE CONFIDENCE GROWS
VANCOUVER, BC and RUNDU, Namibia, Oct. 29, 2021 /CNW/ – The Traditional Authorities of Kavango East and Kavango West have confirmed their support for the oil-and-gas exploration program in Namibia by Reconnaissance Energy Africa Ltd. (the “Company” or “ReconAfrica”) (TSX-V: RECO) (OTCQX: RECAF) (Frankfurt: 0XD).
At a meeting last week in Namibia, the leaders of the five key Traditional Authorities of Kavango East and Kavango West expressed confidence that ReconAfrica’s ongoing exploration program, which has to date identified a conventional oil and gas system in the Kavango Sedimentary Basin, could provide Namibia with a new-found source of socio-economic opportunity if commercialized.
Hompa Eugene Siwombe, Chairperson of the Kavango Traditional Authority Committee, said ReconAfrica’s exploration program in the Region is more than welcome by the communities and lauded the Company’s efforts to support the economic and environmental aspirations of the country.
“Everyone is happy with the way ReconAfrica is doing the exploration. This is what we want — the liberation struggle is gone; it is now time for economic freedom. We want exploration, to know what is under the ground,” he said.
Hompa Siwombe also recognized ReconAfrica’s commitment to communities, which includes the drilling and donation of a planned twenty-two potable, solar-powered water wells, fourteen of which have already been completed and turned over to communities.
“Let the people from the community see that ReconAfrica, while exploring, is considering the people in the Region. We are indeed very thankful for the water wells as they have made the lives of our people in the Kavango regions better.”
Follow the head line for the full story.
Six-month Daily Chart:
Certainly, the shares are in a down-trend, and we are guessing this is an oversold situation. If you want to take a wait and see view, look for a crossing of the 50-day moving average as the signal that the prices are in an intermediate up-trend. I have owned and traded this company for more than a year. My original cost was about $0.55 per share. I feel comfortable buying into what appears and over sold price even though it is high above my original cost. .
Unless there is actual negative news, we are buying with a goal for a minimum of a double to triple in price over the next year.
By Tom Linzmeier, editor, LivingOffTherMarket.com October 29th, 2021
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