A challenge to your view if I may. I am a long-termer myself, I am not sure if I would describe myself as a believer though. As being a believer implies faith and faith implies complete and utter trust in someone and something. This I understand is semantics and I apologise in advance if this is not your understanding of belief.
I invest in MEO because I think we have a good management crew who try their best to deliver value to LT shareholders. So far they have proved competent in guiding the company toward achieving it's LT goals and this will align with the interests of LT holders.
Does this mean investors in the company should not look to seek gain for themselves? No, I don't think so. We primarily invest in stocks to make money to say any different would (usually) be lying to ourselves. Whether you are a short-term trader or a LT investor, I personally see no difference. Being a LT holder does not make me a moral superior to a day trader in the stock.
It is all a game at the end of day, the rules are set by the ASX and we all employ strategies that we think best suit our circumstances and will likely return us the best result.
Was I burnt at Artemis? Yes, I lost quite a bit there. Yet I doffed my proverbial hat to JH and the team because I thought it was a brilliant move of locking in capital for the company with minimal dilution.
At this stage however it is less clear cut - the SP has not risen to the point where I think the SPP will be fully or oversubscribed which is the point of the SPP to start with. If the team still manage to clear most of their target amount then they have achieved their goal and good for them.
But at this point it is a marginal case for my personal goals as to whether or not I participate and the posts on hotcopper over the last couple of days show that many share the same boat as I.
My bet is that in the same manner that we are discussing this here on HC, the team at Collins St are figuring out whether this SPP will be successful and whether to extend it (assuming they believe news over the next few weeks will drive the SP higher).
It's not easy being an explorer you have to balance raising capital (the lifeblood or an exploration firm) every so often based on nothing but promises - which is all an explorer has really and having the technical expertise to prove up potential.
Anyway to conclude my long post? I think it is completely justifiable that investors - even long term ones - are in a quandary as to whether or not to participate.
My 2c
MEO Price at posting:
21.5¢ Sentiment: LT Buy Disclosure: Held
