RECAF: Fundamental Analysis - Warrant Exercise
Updated
Clear descending triangle.
1. Floor is placed at 2.30-2.35. Represents 3.00CAD which must hold for warrants to exercise. It is my sentiment that the company and investors will not allow it to dip under as it will raise 33 million dollars for RECAF. 33 million outstanding warrants at 1.00 strike price = 33 Million cash. This is a financing greater 50% greater than what they raised this summer.
2. Warrants are already piling in! The market is gobbling up the extra float. By time the warrants do force exercise the majority of warrants will have already been paid for.
3. Extra cash = extra wells = more chance of discovering a hydrocarbon source.
4. Less risk = higher share price. More investors should pile in as the chance to prove an enormous hydrocarbon system increases.
5. Expect news and a wave of marketing surrounding the acceleration of warrants exercise between February 8th - February 15th. Inevitable pump
Downside:
1. Deflationary environment puts pressure on oil price turning investors away from the commodity.
2. General market pullback...
1. Floor is placed at 2.30-2.35. Represents 3.00CAD which must hold for warrants to exercise. It is my sentiment that the company and investors will not allow it to dip under as it will raise 33 million dollars for RECAF. 33 million outstanding warrants at 1.00 strike price = 33 Million cash. This is a financing greater 50% greater than what they raised this summer.
2. Warrants are already piling in! The market is gobbling up the extra float. By time the warrants do force exercise the majority of warrants will have already been paid for.
3. Extra cash = extra wells = more chance of discovering a hydrocarbon source.
4. Less risk = higher share price. More investors should pile in as the chance to prove an enormous hydrocarbon system increases.
5. Expect news and a wave of marketing surrounding the acceleration of warrants exercise between February 8th - February 15th. Inevitable pump
Downside:
1. Deflationary environment puts pressure on oil price turning investors away from the commodity.
2. General market pullback...
Note
This chart is playing out. Stock just didn't retrace to the lower fibonacci channel. Buy Channel looks like between 2.68 - 3.00
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