back the hell up. ya reckon MEO's share is not that much bigger than CUE's at Artemis. ya been smokin somthin?
ya dun the nalysis? me's have.
Each 100m CUE shares buys you ~2.14% of Artemis
Each 100m MEO shares buys you ~5.56% of Artemis
Given upon success MEO will snag US$31.5m in cash and then be free-carried (all but the small MOG interest) in two wells, meanwhile CUE would need to find another ~US$20m just to keep its 15%.
It is clear the cash and carry elements of the comparison favour MEO, however even if these condideration were ignored, MEO shareholders would need to be diluted 256% while CUE was not diluted at all, in order to ensure CUE is a better exposure.
More emotional decisions and poor analysis by our favourite poker ace.
IF Artemis is a success, based on MEO being carried through the appraisal, and ignoring the US$100m MEO would have in the bank, any equity raisings will be at $'s per share so the dilution is not going to be anywhere near what you suggest.
Good luck with the Tweeds ;-)
MEO Price at posting:
48.0¢ Sentiment: LT Buy Disclosure: Held
