MEE - Metex Resources

unit said:

I have noticed MEE has more shares than LNC, is that a hangover from pre-UCG days for capital raising and is any capital raising expected in the short term to get the pilot plant ready around August?
Also LNC is looking to develop sites overseas.
Are than any plans for MEE to develop sites overseas?

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Where did you find the info about the number of shares available?

I think MEE, once they prove their pilot plant works with their new technology they will go global for sure (especially with Incitec pivot on board).

LittleMak said:

Where did you find the info about the number of shares available?

I think MEE, once they prove their pilot plant works with their new technology they will go global for sure (especially with Incitec pivot on board).

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That info is freely available on their website LittleMak.... www.metex.com.au
Off the top of my head its in the realm of 220-260 million, dont quote me on that. Cheers

LittleMak said:

Where did you find the info about the number of shares available?

I think MEE, once they prove their pilot plant works with their new technology they will go global for sure (especially with Incitec pivot on board).

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You can divide the market cap by the SP to get the number of shares (Im not sure if this includes company options), but luckily my charting prg has it as approx. 276million so I can look it up on that.
LNC approx 179million

I found this site on the net, (a bit dated now) a presentation which may have been posted before so I apologise if it has. Good outline of project and goals.
http://carbonenergy.com.au/cecd/player.html
It seems to be running on track.

Can't find this information anywhere, probably not looking in the right spot.
So what is the benefit of MEE's new UCG tech compared to others?, ie: is it more cost effective, produce more gas or better green house footprint.

unit said:

You can divide the market cap by the SP to get the number of shares (Im not sure if this includes company options), but luckily my charting prg has it as approx. 276million so I can look it up on that.
LNC approx 179million

I found this site on the net, (a bit dated now) a presentation which may have been posted before so I apologise if it has. Good outline of project and goals.
http://carbonenergy.com.au/cecd/player.html
It seems to be running on track.

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Spot on unit, this is a direct quote off the Metex website.....
"As of 31/03/2008, listed on the Australian Stock Exchange are 276,785,383 fully paid shares."
I believe once all available company options are exercised this takes them over the 300 million mark

springhill said:

Spot on unit, this is a direct quote off the Metex website.....
"As of 31/03/2008, listed on the Australian Stock Exchange are 276,785,383 fully paid shares."
I believe once all available company options are exercised this takes them over the 300 million mark

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The sector will have significant interest following Price Waterhouse's report, available on the Linc Energy site. It is overwhelmingly positive about the UCG sector, and mentions Mee and CXY (only, aside from Linc who commissioned it).

http://www.lincenergy.com.au/pdf/ucgreport-01.pdf

It seems almost inevitable that Mee and CXY will surge, as that report becomes known. I suspect in the short term CXY will rise a far greater percentage, it still is only a $AU50 mil cap company, but of course both should benefit greatly.

(Usual disclosure and disclaimer - see earlier posts).

You've changed your tune a little James

MEE has just broken it's all time highs.

Up up and away

farout said:

You've changed your tune a little James

MEE has just broken it's all time highs.

Up up and away

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Not so sure on that farout, i recall james99 mentioning a figure of $1.00-$1.20 more than once on this thread
If it cracks the psychological 50 cent barrier, i agree we may have to call superman to pull it back to earth

farout said:

Yeah, moving very nicely Eric. I expect it will break through its previous highs with not too much effort. We shall soon see.

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This is what I am referring to springhill...

james99 said:

Hmm, I am not so sure. The capital raising comes at a high price:

1. the issue of an extra 55 mil shares. There are currently about 276 mil shares, so that will increase to 331 mil, a 17% dilution effect on current holdings.

2. and at a price of .20, a very substantial discount to the current price (of about 40% on todays price) . A discount of 10-15% would be more usual.

3. the granting of exclusive rights to IPL in relation to ammonia.

I think that it is excellent to have a credible jv and cornerstone investor, but do not think that, objectively, such a surge in share price is warranted. IPL has been typically smart in striking the bargain.

Further, the Blackwood venture with Constellation involes a further 15 mil shares for .20, taking the total subscription to 346 mil, a combined dilution effect on current holdings of 20%.

At .33 cents, Mee with 346 mil shares would have a market cap of $114 mil; it is simply not, in my view, a $114 mil company, especially compared to other listed small caps.

Those concerns are particularly so when:

1. the dilution impact of employee incentive schemes are also considered;

2. the early stage trial nature of the project is considered.

I am (as you will see from previous posts) an enthusiast of Mee, but think that shareholders are being premature.

I would have been much more impressed by Mee if its capital raising in this matter included existing shareholders and less dilution and discount.

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But I'm not getting into a debate, I am right... I am always right!

James99 has been supporting this stock for quite some time now. He raised valid concerns. He probably (like myself) did not expect the market recognition that UCG appears to be getting now. If it wasn't getting it his concerns might have been more relevant.

Thanks Dink and Springhill. Farout, I must say I am surprsed both by your intial comment about me changing my views and that you would then quote me in full to further comment. I feel compelled to respond:

1. my comment refers to whether a surge is objectively warranted, a separate matter from subjective market sentiment, which I cannot predict. See my comment "I think that it is excellent to have a credible jv and cornerstone investor, but do not think that, objectively, such a surge in share price is warranted."
2. it was thus directed at fundamentals, timing and dilution;
3. it is consistent with my policy of trying to be objective when posting;
4. I first posted on Mee quite early last year and have done so frequently, trying to provide an objective viewpoint. As it happens, I have been and am very supportive of it;
5. I think I have consistently viewed Mee as being worth, in the short to medium term (and obviously depending on progress), a 5-6 times multiple from the .12 and .13c that I (repeatedly and to a substantial degree) bought into it at, and possibly in the $1.20 range (Bigdog, Springhill and Dink, amongst others, were also, from recollection, supportive of Mee from last year and I think Bigdog started the thread);
6. I provided (very brief compared to my research) summary reasons for that view;
7. I have always maintained a re-rating was due, but that the timing of re-rating is difficult (if not impossible) to predict.
8. the share price increase clearly is of benefit, but that does not mean that it would be appropriate to post a mere ramping comment, when there are legitimate issues.

As it happens, I think that CXY is a better buy at today's prices, for reasons related to its team, cap (including taking account of option, for CXY, and share issue, for Mee, dilution), international profile (including its most recent UK sponsership), and the very high likelihood of funding and marketing progress in the near term. It is, in essence, where Mee was about 3 months ago.

That is not to say that CXY is necessary a better company (Mee is further advanced in terms of funding for the pilot project at present; but of course the CXY team was involved in a successful trial burn in 1999), but focuses on potential SP % increases in the short term, and I am still very supportive of both CXY and MEE.

Finally, I doubt mis-interpreting or making personal comments etc will benefit anyone on this site. In short why, having conducted research, a sector comparative analysis, spoken to the management of relevant companies, searched the licence applications in each state, obtained details of State and indigenous policy and issues, spoken with various brokers to assess support, should I, or others, share my views if that is the result, rather than healthy debate directed at the company not the person posting.

You must feel better getting that off your chest. I feel privileged that you would spend so long responding to my passing comment! I'm glad you have released that stress, as a doctor I should warn that bottling this up can lead to heart/psychological problems.

As already stated I am not going to get into a debate over nonsense, all I will say is that Metex was ripe for the picking, and there were many indicators showing this.

At the start of April I was promoting Metex, just before it flourished.

If you have a look at the thread 'the next stock group to boom' you will see that I was also promoting CXY at the start of May, just before it flourished.

Perhaps you may struggle with determining the timing of a 're-rating' however that doesn't mean it is difficult, or impossible as you state, for others.

Trading stocks isn't hard, a few good indicators and some common sense is all it takes.

Geez..... all this hype about UCG and GTL about to happen(well it has already started) and now it seems every company wants in on the action!

LNC, MEE and CXY (how many more?) I also read that Chevron and SASOL are working on projects in WA. Do you guys think all this action will affect share prices or should I say company profits? Will this be a flash in the pan like Uranium was last year?

Has MEE previously proven their technology on any scale? Is their technology really any better than LNC or CXY? Who do you see as really surging ahead long term?

P.S. Ohh do you guys have any other new UCG-GTL additions ready to boom that nobody has discovered yet?

Wow it seem shard to pick who is really going to take off and be successful here (maybe they all will be)

We have Linc who has the 'so far' realized largest coal deposits for it demonstration plant and production in AUS and seems to be the best at advertising this technology to the market.

We have MEE who has teamed up with the CSIRO and supposedly has newer and better technology than linc but a much smaller realized coal deposit (possibly more to come)

And Cougar who has teamed up with the Canada's Syntroleum the world leaders in certain technology with UCG and GTL.

So if you guys had $15-$20k to invest, who would you go for?
Maybe a dive into all them?
Who do you see as being the best value, the possibility to out shine the most?
Basically who seems to be the top company and why?


*(disclaimer:any info is not taken a s a recommendation to buy or sell)

We've just deleted half a dozen or more posts from this thread. Please keep the thread on topic. If you want to hold off topic discussions, we have the general chat forum and the private messaging feature.

Whats the go with the trading halt?

Pending an announcement by the company regarding equity financing???

That doesn't sound good!!!

LittleMak said:

So if you guys had $15-$20k to invest, who would you go for?
Maybe a dive into all them?

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All are like a chameleon and will change colour as time goes by.

But to answer you, I think you answered yourself. Take bet on all of them - lower risk.

Linc with their russian and south african technology has a distinct advantage imo though.

You should be buying for the technology and the expertise each co. has. . Imho, the media will start talking about Peter Bond as they do Twiggy in the next few years. His wealth is set to grow exponentially, as should ours.:chimney

LittleMak said:

Whats the go with the trading halt?

Pending an announcement by the company regarding equity financing???

That doesn't sound good!!!

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According to the West Australian this morning they ar looking at raising up to $20 million to fund a trial program.... Guess who gets the chance to snap up these shares? Not the grass roots people.... the @*%$ing Instos ( cos theyre not wealthy enough ) and the price i hear you ask? 20 @*%$ing cents!!! What a joke, i hope they are punished heavily when they resume trading.... :chainsaw:
Brett is angry today.....

Doesn't seem the most intelligent thought process does it. I'm just happy I sold off a portion an hour before the trading halt. 20c is pretty pathetic, surely current investors would have snapped them up at a discounted price of 30 to 35c.

farout said:

Doesn't seem the most intelligent thought process does it. I'm just happy I sold off a portion an hour before the trading halt. 20c is pretty pathetic, surely current investors would have snapped them up at a discounted price of 30 to 35c.

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There may well be a chance to do that. Sellers starting to line up below 50cents
At the moment I'm running on the theory it will form a cup and handle
from Nov 07 to present (cup)
and dip a bit before coming back (handle)
closer to pilot plant prod'n.
Should break through 50 then, if all goes to plan.


*not investmant advice, yadda yadda yadda