Timshell. I think you were intending to respond to my posts on the point of whether or not the issue will be successful.I didnt say that it would be unsuccessful. My view is that 1. if the SP languishes where it is, the issue will be unsuccessful if it is not largely or fully underwritten.2. It will be largely or completely successful if the SP languishes where it is but is largely or completely underwritten. The 3rd possibility is the one where the SP gets ahead,or well ahead, of the rights price and the issue has been underwritten- obviously no prob. The 4th possibility is the same as the 3rd,but where the issue has not been underwritten - success depends on the SP having a decent margin over the rights price (allowing for the value of the options) - again probably" no prob." if the margin is big enough. Underwriting is the key to the success of this life-saving issue if the SP when the issue is ready to be enshrined in concrete is not adequate to ensure the success of the issue. We wont know what the position is until they formally announce the issue with a statement as to underwriting or not and we can reassess the SP at the time for ourselves . Based on what they have told us about when the gas will flow,and the apparent need to have the issue very soon, the main (only?) tool in their tool kit seems to be an announcement about daily flow rates- a one liner likely to rev up the SP,much like their several announcements over time in regard to "success" with various wells. The market (us) wont wear (IMO) a "such and such a well is producing at 7 MMcfd" announcement without a lot more body to it,as it will tend to be viewed as an attempt to rev up the SP. Time will tell. My view is that Mae have got to have themselves with a an underwriting agreement hidden in their announcements folder(ready to table) when they go to market with the issue. Any prospect that the terms of the issue sans underwriting might not be adequate to achieve their objectives will require the tabling of an underwriting agreement situation to support the issue. Mae absolutely cannot go to market with this issue if there is any chance that the issue might not bring in the new funds needed. Lets see what the SP does from now on... BLY (Boart Longyear) is a good current example of what Mae must do.
MAE Price at posting:
13.0¢ Sentiment: None Disclosure: Held
