Riley Exploration Permian 6/21/24 $35 call options
Posted: Mon Apr 08, 2024 11:04 am
REPX's share count was diluted by the equity raise but no one yet has added any additional production for the Eddy County, Deleware leasehold.
It seems to me the Eddy acquisition is positive and with rising oil prices REPX will be back in the $30s in a few months. Consensus target $50.
So I bought the REPX 6/21/24 Strike $35 call option for $1.00 per contract while the share price was $27.
Also bought Franco Nevada call option. FNV is Rick Ruel's top recommendation in the gold industry as a gold streamer with the highest returns
on capital for the last 30 years. Analyst Dan Amos recommends Barrick Gold, buy up to $18, with a target of $30 in 2025 based on current gold
prices. Barrick owns 5 of the 10 tier-one gold mines in the world defined as producing over 500,000 ounces per year and a life expectancy longer than 10 years. Barrick has 3 more tier-one properties in development: two in Nevada and one in Papua New Guinea. Barrick, net of cash, has no
debt. This is the gold major that "gold hater" Warren Buffett bought in 2020.
No one knows where gold price is going but it is up 20% in the last five years. The gold price could go down from here or it could go to
$7,000. Why not hold some top names just in case something like that happens. The Chinese have lost 1/2 of the value of their US Treasuries
since 2020 due to devaluation of the dollar in inflation and rising interest rates . Treasuries had their worst drop since 1860, one year before
the Civil War in 2022. So the Chinese are trying to decide whether to re-allocate some portion of their wealth into oil or gold.
It seems to me the Eddy acquisition is positive and with rising oil prices REPX will be back in the $30s in a few months. Consensus target $50.
So I bought the REPX 6/21/24 Strike $35 call option for $1.00 per contract while the share price was $27.
Also bought Franco Nevada call option. FNV is Rick Ruel's top recommendation in the gold industry as a gold streamer with the highest returns
on capital for the last 30 years. Analyst Dan Amos recommends Barrick Gold, buy up to $18, with a target of $30 in 2025 based on current gold
prices. Barrick owns 5 of the 10 tier-one gold mines in the world defined as producing over 500,000 ounces per year and a life expectancy longer than 10 years. Barrick has 3 more tier-one properties in development: two in Nevada and one in Papua New Guinea. Barrick, net of cash, has no
debt. This is the gold major that "gold hater" Warren Buffett bought in 2020.
No one knows where gold price is going but it is up 20% in the last five years. The gold price could go down from here or it could go to
$7,000. Why not hold some top names just in case something like that happens. The Chinese have lost 1/2 of the value of their US Treasuries
since 2020 due to devaluation of the dollar in inflation and rising interest rates . Treasuries had their worst drop since 1860, one year before
the Civil War in 2022. So the Chinese are trying to decide whether to re-allocate some portion of their wealth into oil or gold.