This can more than 10 bag, SizeVsSize is why.
I have many 5+ Baggers and one 13 Bagger in oils, especially Canada oils which were detested a year ago when buying them. TGA bot big at .39 almost to day 1 year ago and today it is $2.75 that is a 7 Bagger.
Also 1 year ago bot CRLFF for .32 and today it is $4.18 that is a 13 Bagger.
Did either of them do anything like Recon Africa? No, CRLFF survived when mkt was wrong about that and oil went up. TGA was irrationally low, a stock that have been in and out of for 15 years. They got a better deal on same oil fields in Egypt and oil went up.
Neither did anything of magnitude that Recon has, potentially finding one of the biggest oil fields in history. Not even in the same ballpark or city.
If Exxon found this it would not 20-30 bag, even if 100 billion barrels there, because Exxon is huge. Yahoo says RECAF is $945 million mkt cap after the 42% rally it has done in last few days. EXXON has $275 Billion mkt cap about 300 times more than RECAF. So inherently RECAF would go up 300 times more based on the same future profit gain for both. Simple math.
That is why invest in smaller stocks like TGA and CRLFF. Have only one biggie, COP, like their recent deal and they are well run. But play it with options as know it cannot 7 or 13 bag due to size.
How big are Exxon's oil reserves? 2020 end 15 billion barrels and it is declining, they are not replacing them as fast as pumping them. They added 1 billion to resources because of Guyana in 2021 and are at 10 billion barrels resources (resources are less proved than reserves) so say 25 billion barrels total.
Could Recon have that much producible? Yes. The estimates by both oil pros and anti oil enemies like Nat Geo and Prince Harry are 10s to over 100 billion barrels. Just 1 billion barrels would be a huge win.
Does that mean that RECAF will 300 bag? Unlikely, it will take money to build up a 25 billion barrel field and time. Likely they will take in a partner like Exxon to fund that.
But a 20 Bagger, a 50 Bagger? You bet. And then kick in super stock momo and biggest story in oil this decade and why not over valuation? How are people going to feel after it 20 bags? Same way Apple and Tesla investors felt after those two 20 bagged.
That is the Size Vs Size aspect of this. I know of no oil company that has as favorable Size of mkt cap Vs Size of potential future profits as RECAF.
Cheers
