are social movement an investment risk

In a recent article in the Bull the politically risky nature of csg shares was discussed. The question is just how much investment risk do social movements pose and particularly what is the scale of that risk for MEL? Is Metgasco more exposed than most csg coys?

http://www.thebull.com.au/articles/a/31118-are-coal-seam-gas-stocks-just-too-politically-risky-for-punters.html#.UMBwozCHTWU.twitter


The article compares csg to woodchipping and uranium as industries that suffered enourmously due to social movement campaigns. look what happened to Gunns in Tasmania.

As investors you should be making rational decisions based on the facts, and its not good to let prejudice get in the way.The lismore poll was genuine, 87% did vote against csg and those figures are reliably replicated around the region in ongoing surveys. You do yourself a great disservice by assuming these people are all hippies and unemployed, in fact by underestimating your opposition generally. There is a very powerful and effective social movement in place and it has the capacity to severely impact on MELs activities in an ongoing way.

The share price last week crashed through all previous lows, and you wont overcome this by simply having the CEO villifying the people of the region who oppose your industry. Whatever you think of the Hazzard meeting, 800 angry people dont come out of nowhere, nor do 7000 at a rally. You need to realise that every drill site will be in a northern rivers community and that community will most likely oppose you and probably blockade and delay you. The people being arrested are genuine locals.

Like it or not your company is caught in a much larger political play and could end up as a sacrificial pawn in that game.

Now you can howl me down, all you like, but it wont help you, im actually doing you a favour by warning you of a very real risk that may affect your investments.

MEL has a massive uphill battle to gain access to the reserves it claims to have. Its a matter of opinion whether mels reserves are effectively becoming a stranded asset socially and politically. You have seen what happened to Gunns ltd, they had all the approvals they needed but ended up folding due to the sheer force of the movements against them. Its worth thinking about before its too late.

I really think you would do yourself a favour by looking at these risks dispassionately.

just saying....