They do have there good and bad points.... traders may sell because liquidity may fall as there is less script on issue.... however I feel its a great thing for the stock as it cleans out all the small holdings. We had about 2,500 holders (Total holders around 8,200) with less the $1,500 worth of shares or about 13m in script...Mpo has for a long time been a penny stock with short term traders all over it...this will help remove some of that stigma...
Shares on issue will be less than 200mil which makes for a cleaner registry...and I have made some enquiries and most instos would would much prefer to look at the stock after such a consolidation...given that the company has actually started to produce some positive results and a bright future going forward I think it can be of benefit...
I guess only time will tell and I do expect more short term pain...but after this 2008 should see MPO tracking higher with so much going on...upgrades, drilling & possible sector consoldidation as major players look to increase their reserves...and we also have a carbon trading scheme on the horizon...2011 according to the AGE....
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
