I understand your thoughts.... re the buy back... It hurts enormously when a loss of faith happens due to a government blunder.
Further, I think the Buy Back is a case of economic rationalisation and also a "shaking of the tree" and seeing what happens..
That said: Looking at the VOL over March, I suspect the only buyer in MEL units is the family of companies that are in with Henderson and moved the ole Directors on.
Re ole Directors: A good move in my opinion, they were duds and their track record was neither impressive or with form.
But who has REAL control now Henderson or the newbies?
I think Board strategy is to get the shares on the buy back at the cheapest price possible.
This will increase overall wealth of those shareholders remaining.
BUT if the newbies are the only buyers of this cheap stock then they have absolute control of our $30m.
i.e. If you are a risk taker and can down size your average this might be the time to do it.. BUT your return might show value until many months / years have passed. Hence the risk weighted decision must be made and not an emotional one.
Announcements must be released soon. Re the closure of the Casino office and the finalisation of the decommissioned wells. When that happens they will have an extended but limited period to decide and discuss the new direction for the company to members.
We can wait and survive but only on the wing and a pray of hope.
MEL Price at posting:
5.6¢ Sentiment: Hold Disclosure: Held
