fib ratio, page-5

No heated arguments around our table losty:>))

A day like today is not the time to discuss stocks, whatever they may be. Budget plans should be in place well before now.

If the plan was to place a stop loss and that has been triggered than that is ok - the decision was already made. If the plan was to use a margin loan on a stock like MEO then maybe that was the wrong call in today's climate. If the loan was against MEO then the sea of red across the board could also likely trigger a call. If you need to sell then sell but if you feel your original research was sound then hang on to your investment.

For Mums and Dads (retail holders essentially) - a plan has to be formed when first buying stocks. Part of that plan is to buy within your budget and not to sell in panic. As a long term investor in MEO I like to budget my investment to allow for times like the last week or so, where the need to sell is not important (come to think of it I have have been in that position for some time now).

I have always supported the TAs. If you follow the TA then, as stocktoe has said, it gives an historical account of a stock. The fib can be mapped from any point in that stocks history as shown by nana. If a TA based trader follows a stock like MEO then they can see the pattern it will probably follow. Another way of saying it is that the stock can be easily manipulated or, to put it yet another way, stocks that are easily manipulated are shown up by their chart.

Small-Mid Caps are usually targets, just look at today's board. Most stock have recovered somewhat from their day's low. Times like the present mean blue chips are fair game too.

The fact that there has been almost a four month delay in the farmout ann has supported this manipulation. All MEOmites have seen this by the regular capping, bots, pumps, dumps etc that have been going on during this time. Nervous holders of MEO have been easy targets. Previous problems experienced by MEO over the years have also added to the jitters. The longer the ann takes the more nervous SHs become.

If the ann had been made in October then most MEOmites strategies would have been different by now. For example, liquidate some shares for profit or later accumulation etc. The only thing we can do now is WFTA - hence the frustration.

It has been said before; the market is there to make money, so traders will use everything in their power to do just that, especially the bears. They feed on fear and panic. Sharks will forever circle the MEO raft. Most SHs also don't like to be bogged down so will eventually move on.

Now we are in the middle of a market correction, outside influences have caused some to release their shares. We don't know the cause of this. It could be margin calls, stop losses being triggered. Some SHs will have just had enough and lost patience, because of the delay in the announcement.

The unfortunate thing is that an ann was not made before this correction. Management will not be sitting on their hands and are just following an agreed procedure.

The fundamentals of MEO are still the same. The ann will be made and the market will sit up and notice. The price will then adjust accordingly - so hang in there IMO.

Personally I feel the fundamentals are better than the rise to $1.60 in 2008. At that time the hype was around Heron 2, the farminee was Petrofac with investors such as Lehman Bros and Xstrata.

This time around we do not know who the farmin partner is, yet, only that it is a major international P&E Company.

The farmin is a done deal as advised by both managements. It is just the paper work that needs to be completed and the announcement will be made. Such deals take time.

For those 'chicken littles' running around, fearing the deal is falling in:

MEO have sufficient funds to complete the drilling themselves to retain 70% ~12Tcf gas (+oil). Don't tell me that if they complete a successful drilling there won't be some gas hungry neighbours knocking on the door.

And don't forget there is still the farmout of NT/P68 and Tassie Shoals still in the burner this year. The NT/P68 data room will open 2Q 2010 and 3rd party gas discussions are ongoing.

So, a market correction can whirl around and test MEO, but, as the fundamentals are still there, a good stock can withstand the blow and get up to fight again. MEO has done this before and will do again. Today's trades were still on a relatively low volume and, from a high of 43 to a low of 35.5 and a VWAP of 39.5 the buy:sell ratio was about even. Tomorrow could go either way but with DOW futures up, who knows?

Perhaps the hype about the Petrobras' registration, and subsequent lack of confirmation by the two companies, meant MEO missed out on the first phase of the downturn last week and today was just a catch up.

Once the market turns, MEO will follow and the ann will be released in more positive times. 2010 certainly will be the year of the Tiger for MEO - from a MEOw to a Roar.

Let's hope that the long term holders are rewarded for their patience. Perhaps a wait for just a little longer.

Just my thoughts only:>))