Let's just wait and see what the final deal is before we judge the management desmodaz.
There are two ways we can look at it:
1 MEO could have had taken the deal that best suited the shareholders expectations at that time. This may, or may not have held the price at 80c. We will never know but, looking at yesterdays reaction to the +ve farminee ann, the traders could still have fleeced the SP after the big build up. This is the way MEO has traded for some time.
With this scenario a CR would not have been needed but then MEO would not have the extra funds they have now. Also the deal may have been like the RDP alliance with conditions that leave MEO flat ie, like Zeus, after a total reliance on Artemis.
2 Another deal was offered which must have trumped anything else already on the table. Management has a decision to make. Do they appease the SHs short term wishes and give them the inferior offer or look at the company's future long term.
Like the CEO is reported to have said - Artemis is only a means to finance the greater goals for the company which are the TSMP and TSLNG projects to service the stranded gas in Bonaparte. Of course, management have to make the hard, but correct, decision given their expertise in the industry. After all that is why we voted them there.
That is not to say we can't approach them and put our views forward, just like ernest104. We need to keep management up to date with our concerns. It has also been said companies would keep an eye on forums like HC to keep in touch with the sentiment of the SHs.
Without seeing what went on in the chart room we will never be able to compare what was offered.
The SP didn't really drop under 60c until 13 October, touching the high 50s and low 60s until the CR mid Nov. So there have been a number of times since September long term SHs have been able to either cut their losses or accumulate. For those with a higher average it is unfortunate but the decisions have been ultimately yours, even if it was based on a tip and no research.
CRs always hit the SP and it invariably drops to that point as the CR price sets a tangible point as to where the company is at - until something happens, like a positive ann farmin/jv etc.
Like it has been said recently stop losses are being triggered ATM by some powerful players. Some of these SLs may have been set by punters who want to lock in their profits but for those who really want to lessen their actual losses then that is ok because that is part of the decision process.
The SP has always been manipulated. Like posters in this forum have said - they delight in the fact that they can sell MEO on a high, as they know it will always drop back for a lower re-entry point.
The SP is being tested again today but that is not unusual. For newbies the sell depth compared to the buy side must be daunting. The traders can also work with the added disappointment, to some, that the details of the farmin were not disclosed today (22 Dec) as was reported around the world.
For the long term holders who trust the management to look after their interest in the company the trading games don't affect them, only on paper. Some may join in the games and off-load part of their shares to accumulate but I think you will find they will always keep a core parcel. This is the way you can lower your average - the best of both worlds.
So for me, until the MEO management makes a fundamental error that lessens my confidence in the company's strategy and long term outlook, then I don't think they can be judged too harshly on recent events.
