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Why RES is unique!

I really believe the real reason that there is no extra ordinary ‘buying and selling’. No direct or indirect inside trading, because no individual can have the answer with any degree of certainty.

For this period in time RES is a unique company without inside knowledge and so this cannot increase buying or selling. This is because the ‘finance’ decision is coming from three (external) parties. At this point in time, there can be no person with the the absolute knowledge of whether or not to buy or sell RES shares due to finance approval. I like this thought, it keeps the big accumulators away and the share price down-particularly while accumulating RES shares. The reality is that the price we are purchasing RES is ‘peanuts’ in contrast to it’s underlying asset and potential upside. So for me, I never thought I could own such a potential at such a low price. I remember buying RES at 80c, and thought that was OK, not great, but ok. In my case this has been such a good opportunity. It’s not without risk, as anyone would tell you. But, these opportunities are rare in life, and so I have dipped my toe in the water. 

So Why is RES unique?

When discussing finance the only person in the know is the lender. In our case we have three lenders, so regardless of the assessment officer with any of the lenders, no one can say with 100% certainty if the other two are lenders are going ahead (they are independent of each other) i.e. the only assurance any individual party (lender) can provide is the position on their own funding to RES.

Further the board members and executive can also only know this information in the dying hours as they also cannot assure inside parties with 100% certainty as they also rely on x3 lenders for formal loan approval, and then they require board approval and finally shareholder approval.

This indirectly means no-one can know or have the answer of the all important finance question, so less shares are accumulated for now. This is truly a unique position for us, as it means there is no inside buying and selling as there can be no one in the know.

What it does mean though, if finance does come through, existing shareholders that are ten years deep, they are loyal, and have had a real interest in long term gains. This spells one thing in my eyes, price explosion , a volcano! On the flip side should finance fail, I believe we are above NTA (all debt paid out). Could anyone disagree with this? 

Remember our entire share pricing to date is based around finance approval and the inevitable delays. Hence our below market share price. 

That’s not to say later down the track when we are making other decisions, and the executive/ board have to make other decisions that we will probably see the same old games played out in other Companies (leaked information) i.e. if we are making substantial profits and are looking at buying another asset, as these decisions are known with more certainty, then it’s all about the inside knowledge. But until then, the absolute unique item, that has provided our situation of ‘tightly held’ shares is the ‘finance issue’. This is the unique item that has drawn me to RES.

The same item, that most are complaining about, is the one item, that keeps us safe from the dishonesty,and secrecy of executive/ board as seen in other companies that are ready to explode in value.

‘Finance’ is one decision that is above everyone that is ‘in the know’...It’s up to three separate parties, and that’s great thing in my view.

That all being said, we have waited enough, and acquired enough and we are long term enough. We no longer need to be ‘UNIQUE’.

I’m sure I speak on behalf of all existing shareholders, that we are ready to deal with the problems associated with running a company, we have done our time as a start up. 

I look forward to the quarterly update due this month!