meo - where to from here, page-3

Good work Iam,

This is a great succinct reminder to us longer term investors and a probably a timely research piece on MEO's other Assets and what they mean to the newbies on the MEO block prior to what we are all expecting...that is...an announcement to put to bed the Farminee PRIOR to the AGM.

Remember that the risked Val on Farminee sign off as stated by MEO is $1.17.

The AGM is on the 18th..I really expect an announcement tommorow of some sorts.

If it comes ,then it will be ,in my opinion,in this preferential order: Either,

1: A price sensitive trading Halt .(best result..I have put Chilli on my fingernails for this scenario) or

2: The actual announcment of the Farminee conclusion and signing off on deal with details to be announced at the AGM. Next

3: A Further Delay in proceedings to be resolved prior to
AGM

4: A Delay due to legal documents not being finalised due
to last minute adjustments with a status report at the
AGM.

5: No announcement...I will start to worry!! Credibility
loss is an issue here...for all of us.

Looking at the recent trading for clues...

1. The VWAP on Friday closed @59.19c the last trade was 59.5c ...VWAP for those who do not know is the Volume Weighted Average Price..To me this is a potent key trading indicator in all share trades and a great indicator what the next moves are with any Share.

The VWAP in most transactions is used as a Valuation guide for transaction like these in case a JORC is not avaialble.
It is certainly used by the FIRB on a 7 day based VWAP as an acceptable SP guide for a takeover by a foreign outfit.

I did point out in a recent post that I thought the VWAP was being held @ approx 55c for a reason...will explain this later.

2. The RSI (Relative Strength Index)over the last 2 months

Looked like this :

A: 1st Sept..56c Note this was month of the timing of the
1st Farminee announcement.

B: Ist Oct...70c This incorporated the rise in september
culminating at the peak 79c SP just prior to the
expected announcement.

C: The Current months RSI as of Friday stands at 56c (30
day RSI)

So what does this all mean in laymans terms?

A: My take is that the SP rise has been suppressed
recently from rising rapidly by a concerted thrust to
keep the VWAP around 55c.

Forget the stops above this figure ..this is normal ..I
have a stop to take out some Xmas funds and free carry
the rest ..my level is higher than 60c VWAP to get to
this point. I am sure most savvy holders will employ a
similar technique.

B: Why has this VWAP been kept within this tight range?

My view,and only my view, is that The Farminee might be
wanting a larger slice of the MEO cake to help both MEO
and themselves with a larger capital input and to
incorporate as much of "Iams" researched MEO Assets ,as
they could ,under their own wings.


If it were to be a Large Farminee then they might think it would be advantageous to take an "all in" position.

So as an offset they might want to buy in a huge chunk of MEO shares at a pre agreed VWAP.It would appear to me this VWAP is 55c approx.

As we read in the Annual Report..there will be an amendment to the MEO constitution re takeover provisioning to be put to the vote by all shareholders for ratification.

Now this only makes sense to me if they already know from their "Preffered Farminee" what they have in mind in terms of doing a deal with MEO on Artemis.

So do not be surprised to expect the unexpected re the terms of the Farmin...and, IMO, it will be to the long term benefit to all of us worn out Shareholders.

The UNEXPECTED and "out of the left field curve ball" will be a ,NO Farminee, announcement at the AGM..The Board may need some bodyguards at that stage with a no "Rotten Tomatoes allowed" sign plastered all over the front door of the AGM venue.

If this happens , My ex will call me and say.. "NOT HAPPY JAN !"....So Jurgen ..get on with it and tell us something..The VWAP is telling me a lot..just substantiate it for all of us...tommorow..one day before the AGM is not good enough...PLeeeaase!

Good to see some solid posting Iam amd Jak.It's late..I am having some Sav Plonk and going to have a good snooze soon without dreaming about the Farminee.

Cheers

Strictly my opinions expressed above..not any form of finaccial or medical or wine advice intended for anyone except me. DYODD seems to be the new DYOR..im my game it's Due Diligence (DD).Tedious as it may be!

Apologies for any Grammar or Spelling Bloopers.