I agree/disagree with your points. If I am brutally honest, and I will be, I bought into this stock because of the 'major' JV partner. To leave it up to Meo to find the gas with a 32% COG and $40 million dollars or so is a definite speculative investment. I am no gas expert but I can assure you that the Browse Basin may have to be drilled like swiss cheese before they find it. Far more capital is required. On it's own Meo would require another CR minimum. Then there is money required to store and market the gas etc. Meo could not do this without a Farminee to pay the associated costs for a cut of the potential find. It makes more sense to own 20% free carried than to own 70% and hope for the best.
Management have put us in the position to sell and cut losses or wait. This is a half truth. Indirectly they have, but I hold a loss because I believe that some one will make an offer to suit everyone if the current JV walks and to sell now(unless you can't afford to hold) would be financial suicide. To take a loss and try to recoup it elsewhwere would not be economically viable. To hold would recoup my loss and potentially give a very good profit. I realise some of you would say that a stop loss should have been in place. I would safely assume that most holders have ignored a stop loss that ordinaryly they would apply to any other trade. We are in this stock for the greed, not for the love of Meo or that we are doing a humanitarian deed for the environment and world energy crisis. Hands up who would not flog this stock if it hit $1 tomorrow? You would sell(not give a damn who bought it at this price), hope for a backflip from shorters and cappers and go again. I sold 18% of my holding today because I want to continue trading and not sit around waiting. This stock is speculative and as such we take the consequences associated.
I agree the stock is the laughing stock of the year, not month. Jurgen CV states he has completed Farmin agreements prior. I am no expert but when I heard the deal was between Meo and Farminee and Cue and Mog were expected to stay in the background and just sign what is put in front of them, alarm bells rang. If you were in a business partnership and someone was making a side deal with your partner would you be expected to sit back because you still have you 50%? NO CHANCE- what progresses would affect you also. The next JV if this one fails should have a representative from each company to avoid an amateurish fiasco like this saga.
Maybe we should send Ya,IAM DR and N01STG to name a few.
I have patience and can afford to hold my 82% balance. To say we all have absolutely nothing to worry about is a farce. You can argue this deal is not defeated but I sure learnt the warning signal for future specs I trade.....
Anyway, CE SERA SERA :)))(((
MEO Price at posting:
33.0¢ Sentiment: Hold Disclosure: Held
