The new stock has to hit the market so the price will be supported above 45c.....The smart thing that MEO did was NOT offer it to retail investors....Why is this because if it goes anywhere near 45c again retail investors with their noses out of joint will buy in!!!! Thus supporting the price......
The trouble with most CR;s is they dilute the stock and give all and sundry a chance at getting in on the new issue so there's no one left to buy when it hits the issue price.....but this won't happen to MEO.. The more I think about the more I realise how clever it is......
If you bought in at higher prices you might have to suffer a bit of pain until all this settles down....
If it's just too unbearable - one option is to close out half your position at resistance around 53c but since there are a heap of sells there maybe 52.5 and buy back in at support which at this stage is holding well at 51c....
If it falls to around 45c you might have to hold your nerve while the price is supported!!!! easier said than done! but the last thing you want to do is sell and then see the stock do an about face!
MEO Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
