Rex International Holding Limited

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#11
(27-03-2022, 01:15 PM)ongweehiang Wrote: An update on Rex as I track the crude vs Rex share price.

https://www.weightedresearch.com/p/compa...ernational

Good write up, Wish i had picked it up at 18c, have some at 28c all the way to 44c. 

I believe the breakdown in correlation of share price to oil price might be due to change from catalist board to mainboard? Perhaps those holders who went in heavy during the years before Rex started producing are now cashing out. If you noticed, recently Riverstone was sold down by a 6% big holder from $1+ down to 60c+ and has now recovered post selling and short selling.

Based on earnings at 80USD average WTI oil price last year, this stock should be around 70-80c based on PE of just 10-12. This quarter i believe earnings will even be more since oil price has been conssitently above 100 for a month plus now and likely to stay there or even go higher. So long as no bad things happen in their main oman well and secondary one in netherlands,they should be able to do 10k BPD a day with 70 profit per barrel. thats 700k profit a day!!

Usually small cap oil stocks are highly leveraged plays to oil price as well (just like other commodity small caps that often double the commodity price percentage jump), something like RH petrogas , where a 1 percent move up in oil price ses a 2 percent or more move up in the stock price. 

With so much expected cash flows as long as oil price is above their production costs of around 30usd or so, I am sure when the selling is done, this stock will fly up again to at least 60c, if not even $1 if there is a further surge in oil prices. 

I am pretty bullish oil as so long as there is not recession, the inflation and lack of capital investment into the energy sector the past couple years is sure to cause oil prices likely to hit over 150. Many forget it hit 180 pre-GFC for a while, with more money in the system, it could make a high above $200 this round.

Gold and Oil and other commodities will all be excellent hedges against inflation and upcoming big supply shortages in food and everything else...
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