mae price, page-12

kt008,

To answer your question in one blow is difficult and maybe you can consider a few of these points to come to an answer for yourself:

a)A lot of the reason why our shareprice - among all shares in fact - has dropped this far has to do with the way markets are now behaving due to the way the investors are behaving out of "fear of the unknown". Its the same old pattern after any commodities boom. Im riding it out.

Trading bots, the average 27yr old brokers and empty institutions are using "by hook or crook" techniques to deliver a bottom line to their bosses. Price fluctuations are wide and regular in every stock, let alone MAE.
Anything for a profit - because at a time like this the fingerlings are gobbled up.
Last year financial companies brokers etc felt like sharks - this year they feel like shark bait. And they are in desperate competition to reel in some profits. They pay eachother off with cross trades and deals in this environment and we are not immune to that. Indeed not a single bank in the world has been immuned, so why should we?
Only the golden haired companies will flourish at such a time, where brokers ride on the coat-tails of eachother and golden-haried companies become so overvalued that its just crazy. We were one of those companies last month and some have suffered for buying high on rumour, or at their brokers encouragement.
We will become the market darling agin fairly soon and this will re-occur. Use it to your advantage and get in while you can IMO.




b)Something else you may be interested in -
Our company directors originally intended (a few years back) to dress up an unimproved reserve by building up its 1P and 2P reserves with new technology. We entered an agreement with the old owners of our acreages and we have added significant reserve value as a result. It all went as planned. Now we are building on that reserve again with more drilling and given the proven billions of cubic feet of gas below we have layed critical piplelines into infrastructures (old and new) to ensure that our acreage is hot to trot for when it is sold. The hardware has added significant value to our company - state of the art Deisel pumps, wells an dcompression facilities, vehicles and machinery etc.
We also commissioned a new Independant Reserve Report which is scheduled to be released this year.
From my discussion with various Industry heads in the same region as our acreage, I beleive it will be no surprise if our Reserves triple to around 1 Trillion feet of Gas - 1P&2P combined.
Selling of Gas acreages in the USA has been frantic for over a year now and deals have exceeded previous records.
And Natural Gas to the market has also hit new highs in this last year and are expected to hit $14 per 1000cubic feet in the next winter and summer cycle. We are at a low in this cycle now and many investors have factored this into MAES ongoing valuation, failing to appreciate that we are not a company that intends to get rich through selling Gas to market, but through having the Gas in ground and selling it as a big fat (undepleted) "Christmas Present".


C) Long Term Investors are counting on there being as much gas as possible under our acreage - short term investors have jumped up and down about there not being enough sales to market and have invented reason (again overlooking the fact that we are ultimately best off selling a Gas Company for a motza, not BTU's at its marketprice lows.



d)We have also had shareholders filled with completely unrealistic expectations (no thanks to a few rampers on various forums) that if they invested in MAE before the Independant Reserve Reports were announced and before company Sale occured, they would bag a ton of easy profit.
I warned forum readers about the repercussions of the "false expectations bubble".
The rampers on several share forums boasted about knowing of a pending company sale. They said firstly that it was a sure bet by June, July, then August and then September, October etc. You get the drift.
The fact is that this rumour was effective and disseminated enough that it also filled many investors with expectations.
The result has been that a few people are now frustrated as they heard the rumour while the share price was high and may have bought at up to $1-40 just weeks ago. They are sitting on a loss and bagging the company out of impatience.

What they dont realise is that the fundamentals of the company haven't changed one iota and that they were merely jumping the gun all at once and foolishly it seems. While the Directors still work towards a fat sale price (and have hired envelope pushers Goldman Sachs to draw up a share-price maximising strategy) - the expectations of some shareholders has not been in synch with realistic time-lines and the companies strategy.
So they have bagged the company, not the profit and can only blame themselves. Most of them know at the fore of their minds that MAE is a goer and will be sold and so they are now buying back in at this price level.





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The end result is that our fundamentals havent budged, they are still very solid.
The outlook is good for companies like ours.
The Industry sales of GAs and Acreages in the US supports this.
The fact that we have Goldman Sachs on board supports it in a big way.
Politically driven Gas Price inflation supports this.
New industry supports this.
Environmental concerns support this.
Carbon Trading schemes support this.




The future is blindingly bright for MAE in my opinion and i base it on facts as emotion cannot enter my thinking with the sort of money i have invested
.
Above are my ideas about why our company has a new opportunity to double its price within the month to six weeks - or as you say, why the shareprice has halved of late.





Cheers.


PS: Very Strong Buy at these levels.
A Positively Illiquid Stock is so due to its perceived value by its shareholders. On those terms ets make this one illiquid again!