MPO is great and has a lot of potential imo BUT it has a long road ahead of it before it reaches serious commercial production.
Unless it gets taken over (which I think is unlikely at this stage), I think the company is going to have some cash flow issues in the short term. Their cash reserves are low and the trio from BHP joining the company will put further strain on this.
Personally, I think long term MPO has a bright future but short term there are going to be some issues for the company to resolve and the sp will be tossed around in the meantime until the road ahead becomes clearer.
At the moment, I can't see any strong external influences that will push this price up, particularly not back to recent highs. In the last few weeks most of the shares seem to have landed in the hands of bigger players who are looking to get something from this longer term and they are probably going to have to cough up more funds (in the form of a placement is my guess) to get this company through to new highs. It won't be in their interest to buy much more on-market at this stage and as such I don't expect we will see the price change substantially for some time now.
I may be wrong but this is my take on the current situation.
Add to My Watchlist
What is My Watchlist?