hh

Renergen* (JSE code: REN), now what?

Late September the price started breaking down and end September a Tweeter started posting about them.

I'm not going to defend every point raised, that's the job of the company and after an initial poor response, Monday saw a more detailed SENS.

Paid research.

Ultimately all research is paid for. Sometimes it is paid for by the company and here the issue is disclosure.

I think the bigger issue is a complete lack of disclosure in our industry. By FinTwit or the fancy analysts, albeit assume the latter is always talking their book, which is fair.

Perhaps the biggest point from this last few weeks is;

• Know your stock. Like really know it. When I buy a new holding I put together a lis of 3-5 things I like and 3-5 risks. I may be wrong on any of them, but it makes me do the digging and at least have a decent view of both sides of the story.
• Careful of "new" news. It may be accurate (or it may not), but it also often lacks detail which maters. This was mostly the case with the Twitter news on the stock.

Now what for Renergen

• Results next Friday.
• LNG is flowing.
• Helium is not, but company has said they expect the leak repaired this month.
• In short they are in the same place as they were before all this started. BUT.
• They need to do a US capital raise and list in the Nasdaq. A low share price makes this much more dilutive. How this will play out I have no idea.

I hold and continue to hold Renergen*. It was never going to be smooth sailing and the risks are real. Yes they have the gas and helium in the ground, phase one is half working but phase two is large, complex and expensive with real risks.

Simon Shares

• Middle East war could get really bad for inflation and rates if oil prices rise markedly.
• Decent Calgro M3* (JSE code: CGR) results.
• Horror Pick n Pay (JSE code: PIK) results.
• Local ETF total returns over the last five years.

* I hold ungeared positions.