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- 29 May 2008
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you do realise that whenever someone buys 100k shares, there is someone on the other side of the trade selling those 100k shares to them don't you?
Buy and sell 100k shares x 5 in 30 mins, it will drive it down. If a whole bunch of people do it then it's what we are seeing. There is a whole theory behind this which unfortunately I am not here to educate. sorry.
PS: I bought for the long term. But unfortuantely got screwed early. Now I bought and sold at peak last week. Because I noticed when it reached $0.80 or so everyone else did. But if the shares werent so unstable I would definately hold on for long term.
Metgasco is a great company. The NSW deposits of methane enough to generate power for 30,000 homes for the next 650+ years!!!!
So when you sold at 0.80 you weren't driving the price down?. Speculating a little that you'd pick them up at 0.60 next week? Saucepans calling boilers off white per chance?
Not sure what to say to that? I never said I bought 100k, it was an example I used. Second, it's not about what I do as an individual its about 400 sellers driving the price down in predetory behaviour. Speak to professional brokers they'll give you the run down, causing panic and further sell-0ffs in an already volatile market.
What if ose 400 sellers had bought at 30c? Are they not entitled to sell their shares for profit as they see fit after a big run UP?
Since its already established that MEL is not a shortable stock, so all those sellers must have been once buyers.
If a company has market cap of $780 mill, they shouldn't be worth the same price as another company in the same sector with $300 mill market cap.
If someone is buying and selling the same lot many times a day and if there is a large number of these individuals then this is detrimental and in a way it is contributing to negative slide of the s/p.
A company with a market cap of $780mil isn't worth the same as a company with a market cap of $300mil.
Do you even understand what a market cap is? A company with a $780mil market cap can be the same share price as a $300mil market cap company for a very valid reason.
Why is it not contributing to a rise in the SP as well?
Certainly they are. But certain groups/companies abuse the system and buy, sell, buy, sell in one day - everyday. These people keep small cap prices down (roughly speaking).
So a small cap company is consistently dependant on news of new and better things to maintain the same price level that it reached the day before when it reached that price because of an announcement. In other words if an announcement is made and the s/p goes from $0.5 to $0.7 then these people will ensure that the prices is always heading back down. Unless further anouncements come thorugh to stop the slide.
I'd say this was the least most people were expecting. This upgrade should have been factored in by the market, hence the rise and fall over the day.
Unfortunately, there is likely to be some weakness in MEL's SP, if past performance is anything to go by. At least until the next ann....
Well with an outlook like that, no wonder the s/p are going to the ****ter. If investors don't belive in the company then no hope for sustained growth.
For anyone with any positive thoughts on MEL this is well worth a listen. If you can place any credit in what David Johnson has to say (and i have no reason not to) this story has many chapters to come.
More gas than initially anticipated, love that line (remembering they already believed it to be the largest find in a century within NSW).
Be patient and you will be rewarded is my take away from this interview. 10 weeks of further testing.
http://www.brr.com.au/event/64075/partner/theaustralian
From Arrow Energy (AOE) drilling report:
Clarence Moreton Basin.
Total Resource in the Clarence Moreton Basin is 14,075 PJ.
A hydro-fracture pilot was recently completed and preparation of this well for commencement of production and testing continues. Previous exploration drilling in the area has confirmed that the Walloon Coal Measures are well developed in this area, with thick seams and favourable gas contents.
AOE tenements surround MEL... if anyone is to acquire MEL it will be AOE. AOE are looking to add 1500PJ/a... if they cannot do so organically they may have a look...
Thank you Dangerous. I'll be looking out for any signs.
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