Nice post Simon.It seems they did tell CUE to "Get stuffed" and...

Nice post Simon.

It seems they did tell CUE to "Get stuffed" and maybe moved on with only the 85% of the side agreement. Either way this will come out in the coming months. I am still happy with the deal, however the market certainly has reacted poorly to it.

Considering this stock was 82 cents back in September 09 just on the back that a JV partner was expected to be announced people cannot help but be a bit annoyed today. I mean no one knew back then that it was going to be Oil giant Petrobas.

I think this is a result of 7 month drag out by management. Really in those 7 months the market has risen significantly and MEO would have too with it, however instead we have been on a down trend while the market is on an uptrend and now we find ourselves on an uptrend the week the AXO finally gets back to 5000 points (even if it was for only 1 day). Plenty of investors out there wanted to get the hell out as soon as this announcement came out and that was fairly evident by the sell off today.

Going forward I am expecting a slow and steady rise. We should see a little spike tomorrow due to press coverage and then every time we get a little announcement like securing a rig or FIRB approval we will see some nice gains in the SP. Other than that I am expecting it to start an uptrend north towards 60 cents. I know it is a lot but really I think that is a fair price for this stock at the moment, which is evident considering we saw bids at 60 cents today. Plenty of good news still to come and plenty of risk has been taken out of it.

People may see this as an up-ramp however I am sick of people coming on here telling me and others how crap the deal is. It is exactly what I expected plus a little bonus cash. Now if we do hit gas we will also be receiving a $31 mill as well as the income produced from the 20% and some more free carry.

MEO = Plenty of Cash + Stake in Atremis + Free Carry + More Cash and Free Carry if sucessful = Looks pretty good to me......