I don't know whether or not E.L. & C. Baillieu were paid to produce the report. That is a question for MEO management or Bailleau themselves.
Of course, the stock broking firms produce quite a number of these reports to drumming up business and they state 'advisers will earn a commission of up to 50% of any brokerage resulting from any transactions you may undertake as a result of this advice.' There is money to be made in more ways than one in the market, apart from trading shares. Another example are the reports like Australian Stock Report and Intelligent(?) Investor whose writers often hold the reported stocks so may have an ulterior motive.
Perhaps the firm just made the report available for MEO to put on their website, who knows. But by reading its content perhaps it will help MEOmites better understand the Company and assist them in their decision making to make or save money, whatever the case may be.
What is important is that the report is based on facts available in the public domain. It is well balanced and does warn of, and explain, the drawbacks of the high risk involved in the stock. On the other hand it does explain the potential upside of the stock.
MEO have recognised the quality of the report as being and independent evaluation of the company. I don't think the report on its own will make money for the company. That will always depend on its business plan and the success of its ventures etc.
Perhaps it is because the company understands that there is a large retail base of SHs who do not have advisers and just rely on word of mouth and internet forums such as HC. Reports such as this give them a reference to assist in their decision making in investing in the company.
The report is not a basis for a CR and does not contain any undisclosed information, as far as I can see, so is not a document necessarily for ASX release.
I, for one, am thankful for its appearance. At least now I don't feel it is only the HC MEOmites who are bullish on the company, from its present position.
I wish more companies listed on the ASX were as transparent as MEO.
#:>))
MEO Price at posting:
39.5¢ Sentiment: LT Buy Disclosure: Held
