The investors who bought in during the private placement weren't buying in to only sell after a few weeks. Unless the project plan has changed since then. Investors bought in to aid the development of the project, with a view to long-term growth potential and on the back of the JV with IPL. Selling has been on the back of the US fall on Friday, the trading halt on linc, buoyed by panic and fear. You have to recall that 80c was taken out on an investor who bought 300k shares. I can't recall a selling trade even close to that amount on the dribbling sales. Buyers have backed off, and quite happy to buy on dips. In comparison to LNC, LNC is now 400c higher than MEE, with a market cap of $1.7 billion. MEE has a market cap of only $190 million, so you'd agree that MEE has lot more upside to come and at this price is an absolute bargain. After the EGM on June 23rd, the company will be known as Carbon Energy. Maybe the name change will help? lol.
Point to note is the last price is at a discount of 30.1% to the 12-month high of 93.0c, also worth nothing that the the price is about the same as its 1-month volume weighted average price of 66.11c. Can't see it going much lower, unless sellers are desperate to sell or buyers are reluctant to buy. The cross buy trade today was the only plus, 400k @ 67c, easily the biggest trade.
Investors in MEE should take heart in that Linc Energy (LNC) soared 55.0c (or 13.4%) to $4.65, its largest rise in the last twelve months. The rise is the largest in absolute terms since it soared 50.0c (or 20.3%) on May 13, 2008. MEE looks very promising and their technology take my word for it, is very exciting.
MEE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
