Tevez - If investors involved in the latest cap raising were selling/short selling with prior knowledge of the placement price, this would be tantamount to insider trading. Think through what you are saying!
This cap raising only truly affects the short termers. If the cap raising had not happened and the SP continued to rise, then they would have been happy. The fundamentals of the company have not changed. If the DOW had plunged 5% overnight there would have been a mean sell off on MEO and the short termers would have been burnt in that situation too!
In short MEO have stated they need this extra money to proceed with further acquisitions and developments. Who's to say we won't hear something about these developments in the near term, including positive drilling news from Artemis? Jurgen has repeatedly stated that Artemis is the cherry on a very big cake, not the central purpose for MEO's existence. They have capitalised on recent interest to hedge against the (very real) possibility of failure on A1.
Raising extra money to progress the core project (ie. FLNG and Methanol) is known in Military terms as "selection and maintenance of the aim." i.e. remember what your core task is and keep on doing the things you need to do to achieve that. Artemis is a (albeit potentially lucrative) sideshow to this.
Nothing that the management of MEO has done recently suggests to me otherwise that the core aim of MEO's is to maintain momentum on the FLNG/Methanol side of the house.
MEO Price at posting:
48.5¢ Sentiment: LT Buy Disclosure: Held
