Thought I would repost this as the valuations might be useful for those trying to determine whether the shareprice is in hot air territory. ITS NOT!
"Given, success is worth $3.97/share (@$0.79/GJ, 12Tcf, 477m fpo's) based on MEO at 20%.
Even at a 25% POS, MEO's share is worth $1/share RISKED. Before TSMP, two other gas discoveries.
I believe the 32% POS, and so does the major who has just farmed in, and on this basis MEO's 20% is worth $1.27 RISKED.
Obviously ELC&B and Morgan Stanley SI's/Insto's agree as the offer at 45c was oversubscribed. These are the same people that backed KAR, so before we get carried away with internet forum chatter, lets consider the facts.
At this point the risk is clearly to the updside imo.
There are a lot of KAR investors like me that just made a killing in the last few weeks (my personal paper profits and trades amount to 6figs, refer to my posts on that forum) and as we look for the next KAR, MEO is it.
As the TA people have pointed out, the current sub 50c shareprice is a very low rsk entry point. Even on an average deal, I suspect one could stag 30% on a good deal double that!
Stay cool folks, the MEO board is not the board it once was. The ex Exxon guys are as sharp as they come, have had the opportunity to meet a few of them."
I expect tomorrow KAR will make a very bullish announcement about testing at Poseidon which will further propel KAR, and this will also support the MEO shareprice.
Now, I'm realy looking foward to reading that speeding ticket.
" Sorry Mr ASX, we didn't realise that a small company like MEO would need to announce a global-LNG scale farmout deal until we got back from our Christmas holidays. "
Lets see what tomorrow brings. 80c would be nice!
MEO Price at posting:
53.0¢ Sentiment: LT Buy Disclosure: Held
