mel is totally undervalued and misunderstood, page-93

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

I must confess that i do not get unduly interested if I see someone buying into a company. Especially if it is Holymagiman. Though I must confess that I do buy when he buys, just to keep him company . And also because he sometimes picks it right, and i don’t want to miss out.

Sometimes he gets it wrong, but that is another story for another time.

But I did get quite interested to read that Ms Glenda McLoughlin has increased her stake in the company, to become a substantial shareholder. After all, she is the Chief financial Officer of Metgasco, and I would expect that she would understand the company better than most.

So my understanding of what has happened is this:-

Ms Glenda McLoughlin had 5,886,140 shares and was the 4th largest shareholder, according to the 2008 Annual Report.

She has exercised 4,980, 575 options recently for a cost of $1,499,367 and brought her total number of shares to 10,116,715 shares.

That makes her the third largest shareholder, behind Mr David Johnson who is at second place.

The mathemathics of it all is that she started off with 5,886,140 shares, bought another 4,980,575 shares and is now left with 10,166,715 shares.

That would mean that she has sold 750,000 shares, and assuming that she sold at an average price of about 50 cents recently, that would have given her $375,000 back.

So, she would have ended up investing approx $(1,499,367 -375,000) = $1,124,367 of new money into Metgasco.

It is indeed heartening to see that Metgasco’s Chief Financial Officer believes in the potential of Metgasco and has invested accordingly.

I can only wish her well and hope that the company turns up with good results to reward her for her confidence.

I also hope that the soon to be drilled conventional well Kingfisher-E1 and the next generation of wells that will be drilled in the next six months reward all holders.

And finally, I hope that Santos, Shell, Arrow and BG are keeping track of proceedings in one of the most undervalued coal seam gas companies around.


Blessing of the Lord
MLA