Do I think Range Resources (RRL) is overvalued ? Yes. Where are the shares going short term? I am not sure.
Not only are the markets in a fizzy mood making any short dangerous but from what I gather the company might just announce that it is ready to expand its Trinidad operations thanks to a new loan facility and/or it might actually sell its US assets. Either could see the shares spike short term.
Both are ifs not whens and I would certainly not regard this stock as cheap. But I am ahead on this short trade and so why not bank a gain. I am buying back Range to close at 1.356 and so have netted a massive profit of £2.32 on this trade.
That will assist me slight in my little pre-Christmas contest with Steve Moore. Whoever makes the most/loses the least will not send a cheque for £50 to Woodlarks. Any profits either of us make will also go to Woodlarks.
If you want to trade small caps like Range most spreadbetting firms won’t let you do it. ETX will. That is why we have partnered up with them.