duster, page-26

Would have to be my most frustrating investment... or would that be Lynas (Oh Jeez; don't I know how to pick 'em? - At least anyone reading will know this ain't investing advice!!)

If I was a trader, I would have sold MEO a few weeks back - they were about 25cents at the time, but I wasn't smart enough.

I listened to the clean-shaven, smooth-talkin' CEO and read the Annual Report and all the ASX announcements and presentations which came out of the well-drilled (pun intended), MEO factory, as they have a habit of doing at this time of year. After all, there are director remunerations, bonuses and options to vote on.

And as with Artemis.... ouch, burnt again!!

And not a good year to disappoint the market - for its patience and forgiveness are wearing dangerously thin.

I think this truly is a crucial point in MEO's future destiny.
The Board has repeatedly over promised and under delivered - and once again, like a 3-legged wilderbeest in the Serengeti, finds itself at the mercy of the market.

I agree that the downside risk back to cash-backing levels is on the cards given the current environment - not sure where that is. We have 627million shares and (I think, tho' happy to stand corrected), that after funding Gurame and with the SPP and Noonday's $10m, we hold approx $35m cash - which would suggest between 5.5c-6c cash backing.

So what will Eni do?

There is little doubt in my mind that MEO still holds some quality assets, worthy of further investigation and (more importantly) further invesment:
- Blackwood
- Ibu Horst
- Sub-Vulcan basin
- Breakwater/Marina; and most significantly (for which I agree with IAM);
- Tassie Shoal

The question is, where will the money come from to realise the potential of these assets - indeed, will the money to realise (some of) these assets be forthcoming at all?!!

MEO has sold the strength of its people and their know-how/experience quite a few times now - and they have delivered big fat pay-cheques and millions of shares/options to themselves and a big fat nothing to those who have funded their enterprise. Not a sustainable business model.

I had my reservations for MEO going it alone with Gurame and sadly, the outcome has not been positive. The fact that Jurgen and co. were willing to risk 50%-60% of their (or rather "OUR") cash balance on the venture gave me some hope. After all, they announced that they were pursuing the most likely target in order to entice potential farminee partners for the surrounding terrain - but the result has left me with serious reservations as to their capability and their credibility. That is something they must actively work to restore!!!

As for future funding, I can only imagine that this will be more difficult and more expensive - which means less profitable for shareholders.

Bottom line, I think MEO (like Lynas), must be a trader's dream. High volume, very liquid and highly volatile.

Sadly, I am ill equipped to operate in that sphere. I am neither smart enough nor quick enough to realise the gains to be had.

But I do believe there are quality assets in the portfolio, the most significant (imo) being Tassie Shoal, if Rob Zammit, the Board and destiny can contrive not to fu#§ it up... a lot of luck and good timing is required, I admit.

Quality of management is now a question mark for me...
and that is a worry.

And this factor will determine whether and to what extent and cost we get the financing to continue the dream.

Boy!! This saga is longer than a Lord of the Rings trilogy!

GLTA holders