After reading countless posts about how MEO management are a bunch of morons and amateurs for engaging in an ill-timed capital raising... what about the other possibility? Perhaps this is actually a sign of a more experienced, more professional management team?
To my mind, the capital raising was perfectly timed to deflate the usual "pump and dump" that precedes the drilling of a well. From a company perspective, I think this is a good thing in the longer term... day traders will slink away, disappointed with the lack of short-term gains, and the share price might be allowed to follow a path that reflects actual value rather than "blue sky" predictions. No huge rises on overly-optimistic predictions, no catastrophic falls should the first well not meet expectations.
Perhaps MEO is seeking to establish itself as a more credible investment with a long-term future, and the CR was actually a well-timed strategic move to take some of the sting out of any potential "pump and dump" that may occur during the drill, while also capitalizing on the pre-drill euphoria.
Just a thought.
MEO Price at posting:
48.5¢ Sentiment: None Disclosure: Held
