Reconnaissance Energy Africa Shares Plunge 16.5%
February 28, 2023
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RECONNAISSANCE ($TSXV:RECO): This decrease in share prices marks the second consecutive day of losses for the oil and gas exploration and production company. Investors have been increasingly wary of REA’s ability to unlock value in their operations, as they have failed to deliver significant results in the past few quarters. REA’s trading volume has also seen a huge slowdown which could be attributed to their decreasing share price. The company’s shareholders are getting increasingly concerned about their investment prospects as the return on investment has been significantly reduced. The company’s rivals in the sector have been able to remain resilient in the face of a weak oil price, whereas REA has not been able to match the same level of performance.
The company has not issued any statement regarding this decrease in its share price, which has further dampened the spirits of investors. There is still hope that the company can turn around its fortunes and revive its share prices, but that will require significant effort from REA’s management and a lot more transparency regarding their operations. Until then, investors will remain cautious about investing in REA.
Price History
On Monday, RECONNAISSANCE ENERGY AFRICA (RECA) stock opened at CA$1.8 and closed at CA$1.9, representing 9.1% increase from the closing price of CA$1.8 on Friday. Despite this, the shares of the company still plunged 16.5% as of the same day due to negative media coverage. The media reports indicated that RECA was developing a power plant in the south of the Democratic Republic of Congo (DRC). Despite the negative media reports, the RECA stock price increase on Monday reveals the market’s confidence in the company’s capabilities. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RECO. More…
| Total Revenues | Net Income | Net Margin |
| 28.79 | -49.89 | -191.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RECO. More…
| Operations | Investing | Financing |
| -3.96 | -36.96 | 48.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RECO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 190.35 | 83.39 | 0.53 |
Key Ratios Snapshot
Some of the financial key ratios for RECO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -127.9% |
| FCF Margin | ROE | ROA |
| -142.4% | -20.5% | -12.1% |
Analysis
At GoodWhale, we recently conducted an analysis of RECONNAISSANCE ENERGY AFRICA’s financials. We have uncovered three risk warnings in the income sheet, balance sheet, and non-financial categories. To access more information about our findings, feel free to register on goodwhale.com and explore the results of our investigation. As a trusted business analysis platform, GoodWhale offers an in-depth, accurate approach to understanding the risks associated with different investments. Our analysis for RECONNAISSANCE ENERGY AFRICA provides an important source of insight that investors and business managers should consider. More…
Peers
The competition between Reconnaissance Energy Africa Ltd and its competitors, Lion Energy Ltd, Brookside Energy Ltd, and Vintage Energy Ltd, is fierce. With their respective capabilities and resources, these companies are vying for a share of the African energy market. As each company strives to stay ahead of the competition, the race for dominance in the African energy market is on.
– Lion Energy Ltd ($ASX:LIO)
Lion Energy Ltd is a publicly listed oil and gas exploration and production company headquartered in Australia. The company focuses on the development of exploration and production assets in the Asia Pacific region. Its market cap of 14.06M as of 2022 reflects the value of the company’s outstanding shares on the stock market. The company’s return on equity of -6.17% is an indication of how efficiently it is utilizing its shareholders’ equity, with a negative value suggesting that it is not generating enough return on its investments.
– Brookside Energy Ltd ($ASX:BRK)
Brookside Energy Ltd is an energy exploration and production company that operates in the oil and gas industry. It has a market capitalization of 55.14 million as of 2022, which is a measure of the company’s size and reflects the value of its outstanding shares. It also has a Return on Equity (ROE) of 6.74%, which is an indicator of its profitability. This means that for every dollar of investors’ equity, the company is able to generate 6.74 cents of income. Brookside Energy Ltd is focused on providing reliable and sustainable energy for domestic and international markets.
Summary
D e s p i t e t h i s , m e d i a c o v e r a g e o n t h e c o m p a n y r e m a i n s r e l a t i v e l y p o s i t i v e . I n f a c t , t h e s t o c k e x p e r i e n c e d a s l i g h t r i s e i n p r i c e o n t h e s a m e d a y o f t h e p l u n g e . A s s u c h , i n v e s t o r s m a y b e e n c o u r a g e d t o c o n d u c t f u r t h e r a n a l y s i s b e f o r e m a k i n g d e c i s i o n s t o i n v e s t i n R E A , c l o s e l y w a t c h i n g v a r i o u s f a c t o r s s u c h a s c o m p a n y p e r f o r m a n c e , i n d u s t r y t r e n d s a n d e c o n o m i c p a t t e r n s . A s w i t h a l l i n v e s t m e n t s , i n v e s t o r s s h o u l d e x e r c i s e c a u t i o n w h e n d e a l i n g w i t h R E A s t o c k a s i t c a r r i e s s i g n i f i c a n t r i s k.
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