MHL - Monitor Energy

[Rapture]

Did I miss something here ?? I thought that today's announcement was good ??

Why the huge drop ??????

 

[rapture2002ca]

Am I reading this right - that MHL just gave away more than 80% of their license share? Is this a bad thing? How are they able to now mine the area?

I was thinking the exact same thing, isn't 80-85% too high. Is that why the director sold his share last week?

I'm now kicking myself for not selling at 6c. Down 6k and counting.

 

[coladuna]

This is a load of crap. 80% profit I built up in the last 4 weeks gone in a matter of few hours. Not happy at all.

 

[habs]

relax, people are panicking and selling their stock to lock in a small profit...

remember, for every seller, there are people buying..... why are they buying.. looks cheap!... 66 million shares traded so far today... its not like people are dumping and others are not buying them up....

 

[Broadside]

Too many daytraders were in this one looking for the quick buck. I am quite happy with the deal from a longer term perspective. Holding since around 2c.

 

[Rapture]

relax, people are panicking and selling their stock to lock in a small profit...

remember, for every seller, there are people buying..... why are they buying.. looks cheap!... 66 million shares traded so far today... its not like people are dumping and others are not buying them up....

True ... But I just watched over $3K go in a matter of minutes ........Sorry to those who lost more

 

[stinger_au]

True ... But I just watched over $3K go in a matter of minutes ........Sorry to those who lost more

Yeah people have lost around 3-6k by the looks of it i am still in a profit position but i was up 5k at the 6 cent mark. But i agree that there were a lot of day traders on this one. Everyone that was buying and pushing the price up to 6 cent were short termer's mainly. Now the massive sell has scared a few longer term people and we have dropped below 4 cent mark .

Damn - i just hit the zero mark - it's at where i bought it at. Oh why did i not sell at 6 cent this looks like it went belly up.

 

[Broadside]

Yeah people have lost around 3-6k by the looks of it i am still in a profit position but i was up 5k at the 6 cent mark. But i agree that there were a lot of day traders on this one. Everyone that was buying and pushing the price up to 6 cent were short termer's mainly. Now the massive sell has scared a few longer term people and we have dropped below 4 cent mark .

Damn - i just hit the zero mark - it's at where i bought it at. Oh why did i not sell at 6 cent this looks like it went belly up.

If anything it is a safer long term bet than ever, the terms take out some of the speculative upside but the risk is reduced. There is a lot of hot money in the market looking to make very fast returns so MHL probably no longer ticks that box for them. (Crazy market by the way, I remember when 20% per year was good going.)

 

[rapture2002ca]

Well I'm not sure what to do at the moment. O bought in a sizeable chuck at 5.2c and now I'm getting burnt to a crisp.

With no cash to pump into it, I'm now down 7k. I guess the only thing I can do is hold on to them.

It would be funny if it wasn't so tragic, I go to lunch at 1.00pm and the price is 4.9c and then I come back with an ann out and it has dropped to 3.8c.

Crikey, serves me right for taking a lunch break

 

[nioka]

I've just come in from fishing and can smell fish. Maybe the fishy smell has more to do with what I have read in relation to the Medina Group. I wonder if the "heads of agreement" has given someone a cheap entry into MHL in the event of there being a valuable find and whether there is a relationship between Medina and any or all of the directors of Monitor. It needs some more investigation.

I can still smell fish. The director selling needs an explanation. Maybe he did not agree that the partnership was a fair one. I think giving away such a huge percentage was a bit costly but we are not in a position to make a judgement. Assuming the directors are operating in our best interests it is probably as good a deal as possible. Accepting that and seeing the price seemd to have stabilised I increased my holding by 50% at 37c to find it is falling further. Still in the green but not by much now.

 

[stinger_au]

If anything it is a safer long term bet than ever, the terms take out some of the speculative upside but the risk is reduced. There is a lot of hot money in the market looking to make very fast returns so MHL probably no longer ticks that box for them. (Crazy market by the way, I remember when 20% per year was good going.)

What do you mean by the speculative upside? So does this mean that MHL can't make as much money now?

 

[DionM]

Not a particularly great announcement ... to me it reads like they've sold off 85% of the value of their fields for $15m, as that's all they'll end up with after the exploring is done?

So they value 100% of their licence at $17.6m US?

Based on what, 600m shares on issue, that's US 2.9c / share or 3.29c / share at current exchange rate.

And then when it's producing, MHL only has a 15% equity.

Is my analysis right?

(I hope so, I bought in at 3.2c ...)

I really need to learn to stay the hell away from explorers!

 

[stinger_au]

Not a particularly great announcement ... to me it reads like they've sold off 85% of the value of their fields for $15m, as that's all they'll end up with after the exploring is done?

So they value 100% of their licence at $17.6m US?

Based on what, 600m shares on issue, that's US 2.9c / share or 3.29c / share at current exchange rate.

And then when it's producing, MHL only has a 15% equity.

Is my analysis right?

(I hope so, I bought in at 3.2c ...)

I really need to learn to stay the hell away from explorers!

Can some one explain this - what does it mean if they hit oil now that they only own 15%? All they had was the rights to mine so if they sold of 85% of this thats almost like selling 85% of the company isn it?

 

[kpas]

Can some one explain this - what does it mean if they hit oil now that they only own 15%? All they had was the rights to mine so if they sold of 85% of this thats almost like selling 85% of the company isn it?

They still got Uranium licenses as well don't they which afaik are seperate to the ones they have a HOA with now.

 

[gordon2007]

WOW I haven't seen such venom in ages. This is a prime example of why you don't trade with emotion. I was very high on this weeks ago but have since sold. Will I buy more....I don't know. Need time to digest this information. But whether one buys or sells out, you still need to not have emotion when trading. It's sounding to me a fair few people gambled this as opposed to trading it.

This is a load of crap. 80% profit I built up in the last 4 weeks gone in a matter of few hours. Not happy at all.

 

[DionM]

They still got Uranium licenses as well don't they which afaik are seperate to the ones they have a HOA with now.

True, it doesn't seem to include Uranium, which is a flaw in my analysis. So I guess you could look at the Uranium exploring now being the only cost to MHL while the O+G is developed by the partner.

 

[KIWIKARLOS]

Its not bad they free hold 15% of a good prospect with no capital outlay and its up to medina to pay for any capital required for production MHL just gets 15% of the proceeds.

 

[KIWIKARLOS]

I think this is a good outcome because they get the cash needed to fund exploration and everything to commencement of production which allows them to focus their money on other prospects. Its a risk free project in their terms.

For arguements sake lets say they get 200mill barrels of oil, which i agree is high but in the scheme of the area could be a drop in the bond thats $30 Mill value straight up with no outlay!

 

[Rapture]

Crikey, serves me right for taking a lunch break

Did you have a nice lunch at least ?

Mine went pretty much the same way ... I'm still dumbfound as to how it happened .. I sold out just before close .... I'll need a bit of time to make this one up ...

 

[miller]

its not bad they free hold 15% of a good prospect with no capital outlay and its up to medina to pay for any capital required for production MHL just gets 15% of the proceeds.

So basically Medina have bought the prospect from MHL for 15% of whatever it makes in the future? But MHL still operate it? Is that essentially what has happened?