The eventual value of MST is a big unknown and will depend on a lot of things. First of course is technical success. There are still hurdles but I think the general feeling is that it will get there in the end if the company can survive financially. The next is finance. This is still a big problem but may be resolved once there are a few more sales successes.
In the short to medium term, it is all just up to perception of the punters. MST is renowned for quick spikes which last a very short time. The likelihood is that there will occasionally be more of these given the nature of the company but you have to be pretty quick to take advantage of them.
The day to day price will likely be governed by what the big holders do and whether they are deciding to hold or sell (they are getting their shares cheaper than everyone else anyway through the various issues that have been and are still ongoing). In the period March-June there has been quite a large sell pressure which can, I think, only have been from the larger shareholders (and not MOD). One new encouraging factor is that A Doyle has just taken up his entitlement to 101mil options for .018.
What would you be doing if you were Mr Doyle? He stands to make a truckload if the sp goes significantly above .018 - apart form the 35mil odd shares he has at the moment (and profits already taken). So there is a big incentive for him (and other larger shareholders who have had cheap shares since January) to hang on, maybe even judiciously push the price up a bit by a few strategic purchases now and again. At the moment, there are quite a lot of sells at .009/.010, likely from people raising the cash to take up the rights issue. These are likely to slowly dry up over a period of time and will very likely all be taken out on the next good announcement. Once that happens, I would think the climb to over .015 and maybe over .018 would not take too long.
... so is taking up the rights issue a reasonably good bet. IMO, yes.
MST Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
