capital raising a smart move?, page-34

Hi Kiwi,

Enjoy your posts ... one of the few posters with a broader view rather than an introspective/insular view.

That said,I must disagree with your take on the effect of the latest CR to the punters and the minority "Long term holders" ..who would mostly constitiute the "Mum and Dad" investors...some with lots of shares others with less...some well informed others not.

I am not a mum and dad investor...nor am I uninformed nor are the majority of MEO holders of any description..you know this..both of us have been around MEO for some time.

Back to the disagreeing bit...

Your key point, quoting the MEO rep writing the quote, on behalf of the MEO shareholders...

quote:

"This initiative was undertaken to broaden investor interest and strengthen the shareholder base by introducing key international institutional investors onto the register."

unquote:

My view is that MEO might have possibly brought in unwanted guests. This purely depends on who they targeted with their offshore raod show.

If it happens to be the likes of JP morgan or various unscrupulous "hedge funds" ,then watch out boys and girls!

If that is the case then what you now think is epitome of "Bad Bot Behaviour" you will unpleasantly surprised.

I hope that is not the case.

Just look at the recent 3 plus weeks of the course of trades in

MMX (circa $1.20)
LYC (circa $ 1.56)
SDL (circa $ 0.36)

in particular look at todays trades in AZZ for small scale bot action simimlar to MEO (circa 42c)

I have held shares in all 4 over the last month and the common theme is a hard working bot to suppress price ultimately...when they want to and then they take the foot off the brakes and let the SP recover before applying the brakes again...following a VWAP guideline set by the BOT MASTER...all in a millisecond and before you can press sell you will have lost your steel undies and whatever else is inside them.



Bot programs ,as launched by Brokers or Hedge funds,are very expensive to employ and they are only used by Sophisticated Investors/shorters with a lot of money at their disposal to make a quick 2-3% per trade repeated a few times over the day.

The average sophisticated "Jo Blo, Mum and Dad investor" would not have clue as to what goes on here.They do not stand a snowballs chance in hell...they will always be restricted to a "Good 7-10% P.A Gross return on investment)..normally after a 5 year gestation period of zero return.

So Feel free to check the Data and let me know if I have missed something.

You are now under the control of BOTS ...do not adjust your screen or press the remote to turn it off, do not attempt to adjust your steel undies..it will be all done for you...you are now in the Twilght Zone (for those who can remember the it).

Sad but true.

Some one out there earlier stated that the SP of a company could not possibly go below the cash backing of the SP,or at least a fraction under, to that poster,whom I think is a newbie, I would refer you to the majority of stocks just prior and post GFC pt 1.

Just look at AZZ today ...cash backing 58c as announced yesterday,not including a 110 well,carried free,program over 2 years with a massive upside on the Oil (fracced)from an onshore play with proven HC plays surrounded by the Who's WHO in the O&G sector...suspended for 4 weeks and the SP plinged instead of surging??????

Unless you are investing in the top 100 you are taking a manifest/exponential risk anywhere else below 100.

So beware fo the "Institutional" investors ..in my experience MEO is better off without them.

I hate to say it, but ,that's why CUE/MMR/BGA/ELM/BRU are "safer trades" ..they have a common feature..No Bots.

MEO should rise at a structured rate tomorrow and the day after ,then it gets tricky, next week ..crunch time Wednesday announcement...any hint of a drill stuff up will send the SP into a black hole..regardless of how much cash MEO has....there are too many "punters" on this stock and if Artemis is anything other than a Hydrocarbon show..then it's over Rover for the SP until Q1 next year.

Sorry to be brutally pragmatic..but I am a realist..I have "burn marks" on my backside to prove it...including MEO induced fires.

So I bought back in on the cheap 2 days ago ,until I discoverd about 3pm today that my cheap was not somebody elses version of "Uber" Cheap.

So there you go ...I have now convinced myself to sterr clear of any bot traded stock in future especiall one that requires a sudden CR to cover their future outlook in case of dusters.

Traded in 4 in the last 4 weeks ...100% success rate ..burnt every time...but that is my loss not yours.

So in view of all the above Kiwi this is another invitation for manipulation with the MEO SP rather than an attempt to break out of it.

MEO will be VWAP regulated (barring a duster) and ..U Vill LIKE IT or Else..YaVoll..Verstehen Sie!

Nominee top 20's obviously hold a multitude of insestors funds pooled together...watch out for JP Morgan,Deutsches etc..check the short lists provided by the ASX,keep an eye out for massive volimes traded with the SP going +/- 1.5% either way at open and close with a ,circa 5%, variation during the day...say between 10.30 am to 3.30 pm.

For this type of manipulation look at SDL over the last week ..punch up the 5 day chart on a widescreen.

MEO ,if successful is heading down that path,nothing can prevent it once the Bot's are in full time...Was KAR like that??

To me this CR was ill timed and certainly not in the shareholders interest at the time of announcement.
It brought back memories of this time last year..although last year we had a legitimate reason behind it.

This CR was really like raising a Platinum credit card with a $32M limit from the sopisticates and the plebs (non sophisticates) would pick up the bill.

Sorry but this does not sit well with me..under any circumstances.

Barring any unforseen,extraneous but potential threats to global market over the next 10 working days..I see a rise in the SP, but it will be controlled ..who knows they may even let it run if the strike GAS and it flare out from the well at 5000PSI at a rate of 1000MMcf/d ...only to cap it (SP) a few days later....

Uncle Scrooge is alive and kicking...Bah HumBug!

So Chill out everyone and have a glass/Jar/pint ..or a bladder full of your favourite plonk or even cold Tea..just about every bot traded Share, today ,went downhill by a similar amount (%) to MEO ..have a look at the ones I mentioned above..all sure fire long term producers or about to be...some better than others.

It could be the current global market impacting on the SP's around the world! Many people/Mums and Dads , need cash around Xmas time..it can be a horror period for a lot...the expensive holiday/festive period followed by the big bill period late January!

Enough from me

Over and out...back to my chilled Sov Plonk ..much better than thinking and writing about MEO at the moment.

Cheers

HR

Srtictly my views above..no advicw given or intended..it's your money ..feel free to lose it/win it ..just make sure you know the risks and advantages ..so DYOR or just ..yes..well..DYOR is the best...never believe anything you read on HC unless you have verified it yourself and even then get some one else to verify again...etc...

PS.. never take for granted what any public company directors tell you , especially when they tell you it's for your own good....meanwhile, they get paid lots of money ,by you , for them to tell you that their actions are for your own good.

Blame the Sov Plonk for any Grandma and speling mistakes...not me.

BFN