MEL - Metgasco Limited

[RobVan]

The MEL management is just not interested or understands that shareholders need to see the value of the company to place real long term investment behind it.

If the Metgasco management does not work towards creating a value based company (not just a short quick buck company) they would need to take real steps in order to update their website with new discoveries on a constant basis, keep the market updated on a daily basis as to how the companies moving forward and in which direction. Their website is still not updates with recenet NSW discoveries. I mean how hard is it to pay an IT guy $200 for 1 hour to update a site? That's just silly and costly!

I see the shares heamoraging again this morning when the entire ASX is up. Why? because 'quick buck' shareholders are there just to sell as soon as there is a slight rise in the price.

Shareholders need to see the value of Metgasco as a company with a viable supply of Gas for future markets, and not just a shortcut to make a quick buck.

Cheers

Rob

 

[RobVan]

$0.575 this morning! After collecting their $25 million they all went on holidays. These guys have no clue at all about running that company.

I rang today and asked why people kept continuing to dump stocks from the company, and the person whom I spoke with said that he had no idea. It will take a long time for people not to associate this company with a $0.45 p/s entity.

All those morons wanted was $25 million, in this whole wide world, $25 million So if it goes back down to $0.45 or less, that's fine with them too.

 

[skyQuake]

$0.575 this morning! After collecting their $25 million they all went on holidays. These guys have no clue at all about running that company.

I rang today and asked why people kept continuing to dump stocks from the company, and the person whom I spoke with said that he had no idea. It will take a long time for people not to associate this company with a $0.45 p/s entity.

All those morons wanted was $25 million, in this whole wide world, $25 million So if it goes back down to $0.45 or less, that's fine with them too.

Lol, asking the company why ppl are buying or selling their shares?
SPP holders will always dump for a quick buck! Because if you don't dump now, someone will dump and push the price lower. You can always re-enter the stock after the SPP dumping

 

[RobVan]

Lol, asking the company why ppl are buying or selling their shares?
SPP holders will always dump for a quick buck! Because if you don't dump now, someone will dump and push the price lower. You can always re-enter the stock after the SPP dumping

Mate trust me those issued shares have already (by and large been dumped). Far more shares than were issued at the SPP have been dumped. I suspect these are people that bought around the high 40 and 50 (for the long term) that don't like the way the company has no stability in its share price. I mean what is the company worth? How is its worth measured if not by the value of its shares on the public stock market?

Right now share holders do not see the value of thsi company at all. Even if a major announcement is made in January or February. The long term investers will sell so fast before it is allowed to climb higher than $0.9. In the long term this company will find it very hard to grow beyond a $0.8 or $0.9 p/s company.

I may be wrong, but I just don't see it.

If a company has made the largest conventional discovery of Gas in NSW in 100 years, that should mean that its value has gone up - don't you think?

 

[TheAbyss]

If a company has made the largest conventional discovery of Gas in NSW in 100 years, that should mean that its value has gone up - don't you think?

Rob

The initial announcement attracted a lot of interest mainly day - weekly traders etc.

With the lack of follow up announcements those traders got out for a profit and some at a loss i would venture.

Some shareholders who held prior to the announcement are now taking some profits and others are holding on. I am of the latter and will continue to hold and have also taken up the SP plan.

Try and show some patience here Rob or just get out. You don't identify a massive resource and start producing it overnight. They need to continue drilling etc and with Christmas in the mix no one is going to be doing much of anything unless you would prefer they just keep announcing every resource increase no matter how small?

Be patient and you will be rewarded imo.

 

[skyQuake]

Mate trust me those issued shares have already (by and large been dumped). Far more shares than were issued at the SPP have been dumped. I suspect these are people that bought around the high 40 and 50 (for the long term) that don't like the way the company has no stability in its share price. I mean what is the company worth? How is its worth measured if not by the value of its shares on the public stock market?

Its worth is how much ppl are prepared to pay for each individual share.

SPP is nowhere near done.

35.5 Mil shares have been traded since allottment on the 10th Dec. Even though shares were allotted Midday 10th dec, we'll use the full volume of that day.
I'd say on average 1 mil of volume is non-spp selling; in the 9 days = 9 mil shares
35.5 - 9 = 26.5 Mil shares dumped from SPP
55.5 Mil shares issued = 30 Mil shares left to dump.
Now not everyone will dump their SPP shares; The figure is a guess at best. 50% of ppl dump their spp? 70%? 90%?
Around 1/2 the volume is already done; just wait and see when it finally stops and bounces.

 

[RobVan]

Rob

With the lack of follow up announcements those traders got out for a profit and some at a loss i would venture.

That's exactly what I mean. These guys have no clue about the perception of the public investor and to create confidence in the investor. They have no clue about the importance of follow-up announcements.

Mate I wasn't one of those investors who was in it for the quick buck. So when the company announced that it had made that discovery in NSW, I showed tremendous faith and pured money in (in addition to the SPP). I bought at least 30k shares at $0.8 (after its freefall in 1.5 days from $1.03 p/s). Thinking that a company with proven resouces which owns all rights to dig up and distribute would maintain its value and integrity. Well how wrong was I..!?

The funds which were borrowed for the investment have had to be returned because they were called back. They were called because the price fell bloody $0.20 in one or two days and they got scared! In addition most of my SSP has been sold just to meet debt obligations. So mate not much use to be patient now.

I am now one of the ones that sit there hoping that it will drop to some redicuolous amount where I can just purchase 10 or 20k worth of shares.

I tried to belive in the company, but others certainly did not share my sentiment. I would have never invested at $0.80 had I known it will freefall so much more.

Thanks for the feedback guys.

Rob

 

[Wysiwyg]

Percent of total equity per trade and dollars risked per trade. I didn't learn about these until I blew up many times. Stop loss and equity management are part of the trading plan nowadays.

 

[skc]

That's exactly what I mean. These guys have no clue about the perception of the public investor and to create confidence in the investor. They have no clue about the importance of follow-up announcements.

Mate I wasn't one of those investors who was in it for the quick buck. So when the company announced that it had made that discovery in NSW, I showed tremendous faith and pured money in (in addition to the SPP). I bought at least 30k shares at $0.8 (after its freefall in 1.5 days from $1.03 p/s). Thinking that a company with proven resouces which owns all rights to dig up and distribute would maintain its value and integrity. Well how wrong was I..!?

The funds which were borrowed for the investment have had to be returned because they were called back. They were called because the price fell bloody $0.20 in one or two days and they got scared! In addition most of my SSP has been sold just to meet debt obligations. So mate not much use to be patient now.

I am now one of the ones that sit there hoping that it will drop to some redicuolous amount where I can just purchase 10 or 20k worth of shares.

I tried to belive in the company, but others certainly did not share my sentiment. I would have never invested at $0.80 had I known it will freefall so much more.

Thanks for the feedback guys.

Rob

Sorry about your loss. Two crucial errors here mate...

1. The day to day job of the management is not to prop up the share price. It is to run the company and monetise the resources. The share price will follow the fundamentals eventually, if the fundamentals were there, but no one can be sure when that might happen. On the other hand, management who cares only about share price are rampers.

2. You are investing on the share's fundamental yet you open yourself up for someone else to tell you when to sell. You have to let go of the fear of missing out... that fear will never make good investor / trader imo.

 

[jonojpsg]

Corrrrrrr! Are you serious!!?? You leveraged up a margin loan (or equivalent?) to buy MEL at 80c after it had risen 100% in a couple of weeks Mate, I'm sorry to be harsh but that is simply ridiculous.

If you had simply read this thread you would have seen the amount of talk about post SPP dumping - I was certainly looking out for it. I was actually watching very closely during the last few weeks - traded into it around 60 and sold out around $1 as I thought that would be significant resistance and that SPP shares would push it back down pretty quick.

Anyway, from someone who has lost at least $20k from leveraging into trades that went south WITHOUT set stop losses, make sure you set a tight stop loss that is automatic and doesn't rely on you pulling the trigger!!

 

[condog]

Still no announcment on the proposed significant upgrades........

If they do come through it will be great, but there has been a lot of silence from MEL in the last 2 weeks.

Time will tell..

 

[RobVan]

Still no announcment on the proposed significant upgrades........

If they do come through it will be great, but there has been a lot of silence from MEL in the last 2 weeks.

Time will tell..

Mate, this is what I've been complaining about. All they wanted was that $25 mill. The rest can go to hell. At least 90% of the ASX was green today, MEL was in red. All other gas companies including ESG (MEL' nearest competitor) was trading at least 5c above last traded price. They released one update at 1.30pm on 24 December, half an our before ASX closing time and it wasn't there today.

Trust me, we're not dealing with the brightest management team here, by any stretch of the imagination. Small company = Think small.

Happy new year.

 

[xolstis]

MEL is on the move again, interesting considering the thin volumes on the exchange in general. Is this the follow-up ann we've been waiting for?

 

[RobVan]

Anyone know why the Australian Small Cap Investigator is no longer covering Metgasco???

I just saw it in their December 2009 edition!

I'd Probably because it's one of the most unstable energy companies in Australia. More ups and downs than a roller coaster .

Cheers

Rob

 

[Propagate]

Anyone know why the Australian Small Cap Investigator is no longer covering Metgasco???
Rob

...because it triggered it's trailing stop level so became a sell recommendation.

Since introducing trailing stop levels to his stocks, a lot of the ASI stocks have dropped out and are no longer buy recommendations.

He does say n one of the issues that he will continue to monitor stocks that trip the back stops and would let people know via the news letter whether & when to buy back in.

 

[RobVan]

Lol, yesterday it went to $0.78, today $0.70 and dropping. No announcements or nothing, it's almost comical.

Why bother seriously..!?

 

[questionall_42]

Lol, yesterday it went to $0.78, today $0.70 and dropping. No announcements or nothing, it's almost comical.

Why bother seriously..!?

RobVan - welcome to volatility. If you don't understand beta, then look into it: http://en.wikipedia.org/wiki/Beta_(finance) or http://www.investopedia.com/articles/stocks/04/113004.asp

If you are getting frustrated by the movements, then get out. You will go crazy with the ups and downs. To me, this is normal volatility for a small cap like MEL. And I must ask - what is your exit strategy for MEL?

 

[RobVan]

RobVan - welcome to volatility. If you don't understand beta, then look into it: http://en.wikipedia.org/wiki/Beta_(finance) or http://www.investopedia.com/articles/stocks/04/113004.asp

If you are getting frustrated by the movements, then get out. You will go crazy with the ups and downs. To me, this is normal volatility for a small cap like MEL. And I must ask - what is your exit strategy for MEL?

Mate its not up to you to tell me to get out. You're not the one who lost $30,000 of your hard earned money!

My exist strategy is simple. Hold the company accountable for the lack of technical announcements during the SPP, they knew how to keep it vague to make it seem like they'd stumbled on trillions of litres of gas. But alas, one or 2 days before the actual issue (which was stuffed up) they announced that it was only billions. In the meantime people like myself believing the company (its vague announcement) invested at high prices in addition to the money forked out for the SPP (thinking that certainly the company would be worth more than $1 after their "great" discovery).

My mistake was I didn't put a trigger to sell after its loss of $0.2 in 2 days. I know, I am not the only one, but I sure will not be the silent one. This company has to act more responsibly towards its investors.

Exit strategy: wait and see if it goes back up, and try to recover some of the funds lost.

 

[Largesse]

wow.

this thread has really taken a dive.

rob no need to be so defensive, you made a poorly timed buy, now your paying for it.

p.s. you should probably set yourself a stop..... hold and hope usually ends in tears

 

[CapnBirdseye]

So, it's just a paper loss atm. I have to agree with the other posters, MEL is volatile and does drop pretty steadily without and flow of information. Saying that, it runs hard with good announcements.... and they can be at any time.

So, don't be suprised of the falling SP, it doesn't mean that there has been a change in the fundamentals, just falling on low volume. Small caps tend to do this because of 'investors' hitting the panic button.

Lots of news to come, its just a matter of waiting it out. Management are busy running the company and announcements will come as necessary.