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(B)(N) REO Reservoir Capital Corporation

January 21, 2014
Brodarevo 1 Courtesy: Reservoir Capital Corporation

Brodarevo 1
Courtesy: Reservoir Capital Corporation

Deal Book. Some investors – not too many or too much, just $150 million worth in early 2011, now $2 million should someone want to buy it – have been moved to invest in renewable energy projects on the fast-running Lim River in the Serbian Balkans.

The company, at this late date, is apparently entangled by “red tape” and seeks an additional equity interest – they’re not sure how much – to move these projects ahead, possibly (Reuters, January 21, 2014, Canada’s Reservoir Capital seeks more funds for Balkan energy projects).

We, however, are unmoved. Only astonished. There is surely enough engineering expertise in Serbia – which has three nuclear plants – to takeover this pile of stones, rivulets and river rights for what it’s worth. Nothing. Possibly, they don’t want it.

Exhibit 1: (B)(N) REO Reservoir Capital Corporation – Risk Price Chart

(B)(N) REO Reservoir Capital Corporation

(B)(N) REO Reservoir Capital Corporation

In order for the stock price to exist at all, some investors bought it at $2.50, and then again at $1 and then $0.50 a year later and are now holding it at $0.02 (2¢) pending a possible re-capitalization at 1:20 (one new share for twenty old).

(Please Click on the Chart to make it larger if required.)

We cannot help them. Investors who are indifferent to the “price of risk” are likely to learn the “cost of it“.

For more information on the chart elements and additional references to the theory, please see our Post, The RiskWerk Company Glossary.

And for more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class actionLa Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in AmericaBig OilShopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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