meo concern , page-21

Nana

The T/A in me agrees with you completely, but I suspect that the cash-per-share has completely shifted the T/A game. In the last 20 years of trading I've gone from strictly F/A to strictly T/A and now firmly believe that the only way to go is a hyrbid of the two. I firmly believe that every holder would have to be acurely aware of the cash pos per share & would be insane to sell below that level. Moreover, everyone else realises that this exact point represents min value and will buy like mad.

Obviously I'm bullish on this but the calc is a no brainer: there are 3 options on the table for any share & applying this to MEO (for me) is as follows:

1) Defunct: not likely - too much cash v payables, so I rule rule this one out. Mgt are clearly far too smart to even entertain this option (if in doubt, just have a look at the recent performance from a purely Corporate perspective - cap raise at 52c + massive cash injection even despite last duster drill & every other deal that has appeared on the table for me = very, very smart.

2) Downside: T/A support - again great for the Darryl Guppy die-hards, but the game has changed - too much cash landed on the table recently, co CPS has got to rule there - calc is v high 15c' or higher: before taking into account other assets (bugger all payables). So at current position downside is 0 (because we are already below CPS value) - most of my purchases is within partial ticks of this so not concerned at all & I factored this in already. So downside risk for me is 0 because we are below cash per share position (yes I'm obviously bullish on this share but even in an insane market there are moments of clarity when everyone just realises that they've raced for the door too fast and then bolt back through it again).

3)Upside: from a T/A perspective there is a clear gap to fill to 42.5-43 cents. This is 283% gain from current price. If you look at previous pre-drill performance (and yes there is another on the way), these have always been SP spikes (and sometimes massive - just look at a long term chart).

If I was to add another point to the above, it would be Blurrt's insight with AED & Puffin - see other thread (in fact this should be the first perhaps in the above analysis as something that should be considered). This one is extremely interesting not just because of the dough AED's court settlement might add to ENI, but because it might just (massively) accelerate further J/V & drill action with MEO. They are clearly very closely aligned organisations & strategically this is just such a smart move.

That's my 2 cents worth anyhow - a huge personal thanks to anyone who donated their shares to me today - you won't be getting them back at this price :)

Please DYOR