Post by JimmyRobby85 on Jul 24, 2014 14:20:03 GMT
Perhaps the winds of change are genuinely blowing through Range Resources (RRL). After I wrote my first piece on the company earlier today, highlighting the 1.14% dilution of shareholders just to pay fees, I spoke with Buchanan. Given our recent history with the PR firm that no longer plays dirty tricks on Range’s shareholders (sorry – I couldn’t resist, that line still makes me chuckle), I was surprised to get a call back. But I did and I have to say the conversation was far more constructive than others I have had with the firm. This time, rather than being summarily dismissed or just downright ignored, Buchanan responded to my questions and confirmed one fact, which could prove most telling for Range’s future. Range Resources no longer has any relationship, whatsoever, with Okap Ventures.
Now this news won’t come as much of a shock to Range’s army of bulletin board fans. I was first alerted to this possibility a few weeks ago by a comment left on an article I had published. I also saw that Okap’s website no longer referred to Range as a client, but on its own this wasn’t proof.
However, even though I would like to see confirmation of the severing of ties with Okap in an RNS, I now have to believe this is true, after Buchanan’s official confirmation.
Over the coming months there will almost certainly still be more nasty surprises, stemming from financial agreements made during Peter Landau’s reign. Very little (if anything) can be done about agreements already entered into. For example, there are still over 700hundred million active options, with an exercise price of 4p or lower, so there remains plenty of scope for those who helped bleed this company nearly dry still to profit greatly from any further share price gains.
But does this matter to Range’s shareholders?
Probably not.
As distasteful as I find much of what has happened with this business, what is done is done. I still have questions over the Abraham investment and the LandOcean deal. I also don’t see much fundamental attraction in buying into Range with its market cap of £97million, but for now it might be time to give “New Range” the benefit of the doubt and see what Rory Scott Russell and his new team of directors can do with the company’s assets.
I really hope I don’t live to regret saying this...
Now this news won’t come as much of a shock to Range’s army of bulletin board fans. I was first alerted to this possibility a few weeks ago by a comment left on an article I had published. I also saw that Okap’s website no longer referred to Range as a client, but on its own this wasn’t proof.
However, even though I would like to see confirmation of the severing of ties with Okap in an RNS, I now have to believe this is true, after Buchanan’s official confirmation.
Over the coming months there will almost certainly still be more nasty surprises, stemming from financial agreements made during Peter Landau’s reign. Very little (if anything) can be done about agreements already entered into. For example, there are still over 700hundred million active options, with an exercise price of 4p or lower, so there remains plenty of scope for those who helped bleed this company nearly dry still to profit greatly from any further share price gains.
But does this matter to Range’s shareholders?
Probably not.
As distasteful as I find much of what has happened with this business, what is done is done. I still have questions over the Abraham investment and the LandOcean deal. I also don’t see much fundamental attraction in buying into Range with its market cap of £97million, but for now it might be time to give “New Range” the benefit of the doubt and see what Rory Scott Russell and his new team of directors can do with the company’s assets.
I really hope I don’t live to regret saying this...
