With these World Stage LNG projects popping up (Gladstone/PNG LNG eg).. for us they are going to change the whole concept of investing in the oil sector... The new risk return profiles that we will see are going to reduce our risks on many levels, and the returns are going to be just as large as this expensive WA offshore drilling ... just look at what BOW did... Many csg stocks will run like that over the next few years... Im looking closely in PNG... and thinking of flicking my CUE for NGE... in time quite likely...
So for me, it doesnt make sense to go for this sort of investment... it just happens that CUE farmed out a permit (which I held for Maari, and the rerate of doubling reserves that never really happened), and got the drilling of Zeus and some tasty wells along the way for free...
low down and big up that is what we always chase... The problem with MEO is that it has alot of up (on Artemis), but the downside is just as much, meaning that it is not quite the special stock we all try to get hold of...
I might consider MEO investment on the results of Artemis... my strategy would be to short on failure of Artemis, because the stock would go to 10c, (it wouldnt fall to that straight away)... and on success, my feeling is that with all this hype around that the SP could easily run too hard... So I would therefore be shorting again... over the years ive spotted great shorting stocks but never done it... recently RFE was a gift I passed up on... saw it within 10 mins research, then backed it up.... Im going to look into shorting for next year, because there are a heap load of ASX oilers in the US region that will suffer...and many others who will be left out of the changing nature of the oil and gas industry....
my downramping is not me being a scammer (like those brokers)... I downramp because I really mean what I say... On other threads they attack me, its really quite funny because those investors dont do the proper research by punching numbers... they just look at the stock and say "this must be good".... well is it really that good? have you done your numbers?
most of the time the answer is no!
You cant value Artemis or MEO... I dont know why the brokers even gloss over these valuations... its total mis management of investors funds.... These investors go to brokers/they subscribe to newsletters to get the good oil info... at the end of the day these brokers get your good oil money and its a basic transfer of wealth from you to them... through the transfer of stock at higher prices for you, and lower prices for them...
make sure you do numbers or make sure you do technical analysis...... if you dont do either, then you might aswell throw darts at a board...
as I said, MEO will rebound in time... if your prepared to lose time, then you wont lose money (as your position retraces in the lead up to Artemis and the hype surrounding it)....
Value investing mate... Hype investing has no real long term benefits... and wont support a stock down the line
bye for now... .^sc
MEO Price at posting:
40.5¢ Sentiment: None Disclosure: Not Held
