MHL - Monitor Energy

[Broadside]

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 are now free carried on their oil and gas exploration but they have given up 85% of the ownership....I am sure they got the best terms they could, so while we lose most equity in the project we as shareholders won't be funding all the work....it derisks it....it is common practice stinger but you hope they got a reasonable deal. As a small company they needed to do this or they would continually be going to the market to raise capital.

They still have their Uranium projects.

I am happy as a longer term holder (not happy with share price reaction!) but obviously it takes some of the upside away. The savage fall suggests to me that MHL was full of daytrader money. How many have been holding for a year as opposed to a month or two? I dare say it is mainly short term holders who are most angry. Now that the company has a free carry they can work on finding further opportunities, doing the same again, and again etc.

If one of these free carry projects hits pay dirt it's a company maker.

I reckon it's a good strategy for a very small company that was just a shell about a year back.

What do other longer term holders think? this meets my expectations of how they would go about things.

 

[mobcat]

Ouch oh well im long any way but it was nice to see her in the 6,s.hey i liked the news but obviously the market didnt maybe they cant read or they expected Mann or Santos or something ...... managed to drop a few mill in the high 4,s when the stampede started but bought again in the mid 3,s at the end of the day hope it holds up tomorrow AGM this week and a new top 20 list should be a interesting read to say the least plenty of legs left in this one IMO

 

[rapture2002ca]

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 ...

Just for the record, lunch was great. Although I don't think it was worth the loss of 7 gorillas.

I'm generally in MHL long term but I'm annoyed I didn't take the profit when I could have.

It is as what others have posted, it was a low risk deal. Unfortunately the 15% deal wasn't what the market wanted.

I hope it rebounds soon!

 

[spottygoose]

is medina group ltd the much-anticipated jv farm-out partner

Kudos to you Happytown you were one step ahead of the pack on this. You called it last week and were spot on. Time for the bottom drawer for these.

 

[kpas]

Also have to remember that CIG is currently drilling 11 holes(http://imagesignal.comsec.com.au/asxdata/20071123/pdf/00786528.pdf) and a significant find will help MHL share price.

 

[DionM]

Volume was high, as high as the spike upwards just recently by the looks of it. So there were plenty buying on the fall. Perhaps some of those who got out on the high and now buying back in?

Tomorrow will be telling, see if it respects recent support at just over 3c, or whether it drops to earlier support at around 2c.

 

[Doris]

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

Well I took a lunch break too!! I saw my 0.225 order for KAL didn't go through as it'd opened at 0.23... and in a trading halt... with a buyer on .40!

So a quick look at my second choice of MHL and it'd dropped 'nicely' to .042. I checked and saw the ann thinking it was OK. By the time I'd cancelled my redundant sell for KAL and clicked 'confirm order' for MHL @ .041 it'd gobbled up my order and dropped to .038.

Of course back at home I saw it'd fallen even worse to .033 but recovered a little to .035 on the close. So then I looked at my chart to see a buy signal of a double bottom 2 weeks ago (then it ran up) and a sell signal of a double top on Thursday! I’d just looked at the longer term chart. I am learning. Steep curve.

Fear and greed ran it today.

You guys have given me confidence in the future of MHL and I salute you!

 

[tech/a]

See if a technical view is of any help.
Ive bought a small parcel at 3.4c
Looking for some sign of a stop in selling and a renewal of buying.But for those holding I think long term is going to be LONG TERM.I'm looking for a quick short term play based upon this massive sell off!

Anyway hope the charts help.

The first is an Elliot count and the second my own analysis of the situation.Pretty grim for those long but not hopeless.

This is a personal opinion of course and should not be taken as advice.

 

[kpas]

MHL has found good support around 3.1 - 3.2c

Reletively low volume traded this morning, but better then I expected given the huge drop last night in the US.

 

[stinger_au]

I know i am in the long term though it hurts to see it fall from .06 to .030 in one day. That means 15k to 7.5k for me . I could of done with the profit from this one quite nicely though i thought it was going to go places. And its still going down - how low will she go ?

 

[rapture2002ca]

I know i am in the long term though it hurts to see it fall from .06 to .030 in one day. That means 15k to 7.5k for me . I could of done with the profit from this one quite nicely though i thought it was going to go places. And its still going down - how low will she go ?

Well it could be worse, I pumped 25k into this one at 5.2c. I'm now down 10 goriilas. I also had the opportunity sell at 6.2c but I let the greed take over.

I'm generally in this for the long haul, MHL still have a 15% stake in what could potentially be pretty huge. Added to this, MHL are free of all costs until proudction, so there shouldn't be any capitalisations.

From what I've seen the deal is similar to CIG deal with Santos and they are currently getting some good drill results.

If I can muster some more cash I will certainly put it into MHL so I can reduce my average. Other than that I'm happy just to leave them in my bottom draw as well.

 

[KIWIKARLOS]

i suspect they aren't interested in playing around with the oil tennemants and hence why they farmed them out to Monitor who are focussed on oil exploration and can get the best outcome.

My suspicion is that they will focus on the uranium deposits now for which they have 50/50 partnership with another company who knows alot about Uranium.

Overall i think they have been smart. They have great pieces of land but not enough expertise and cash to get the value out of them hence the partnerships/ farm out gives them the best potential to get good results with little risk.

 

[Risky Trader]

My question is why MHL so desperately need the 13 Millions... and so soon?

are they planning to drilling somewhere in a hurry for Uranium?
What are they planning to do with the money?
How come no one else come forward to temp MHL to sell 85% .. except for MEdina.

The ann... create more questions.

 

[rapture2002ca]

Seems like more panic selling is occurring again today, I guess the negativity in the market hasn't helped.

The ann never merited this rout.

 

[Risky Trader]

I will be very interest to hear what kind of explaination the Board sell for this week AGM.

IMHO they better have some sort of decent reason for taking this path or else... investors going to throw jandals

 

[DionM]

Interesting. Next stop is around 2cents (historical support) ...

The AGM could cause the price to fall even further if investors don't like what they hear.

 

[stinger_au]

Well it could be worse, I pumped 25k into this one at 5.2c. I'm now down 10 goriilas. I also had the opportunity sell at 6.2c but I let the greed take over.

I'm generally in this for the long haul, MHL still have a 15% stake in what could potentially be pretty huge. Added to this, MHL are free of all costs until proudction, so there shouldn't be any capitalisations.

From what I've seen the deal is similar to CIG deal with Santos and they are currently getting some good drill results.

If I can muster some more cash I will certainly put it into MHL so I can reduce my average. Other than that I'm happy just to leave them in my bottom draw as well.

25k ouch thats a fair buy in by my books - i am starting to wish i had never herd of MHl. I guess UT's advice about risk portfolio went on deaf hears for me. Its dropped into the 2 cent range - can't believe it - what else is there to do but just hang on to them.

 

[KIWIKARLOS]

mate i've taken substantial hits before but sold out at loss to reinvest in other shares that have returned my loss and given profit. I think the big problem now is that the worlds financial markets are so screwed this is virtually impossible unless you fluke it with things like FDL. Im all out except for one share waiting for what i believe is going to be a big downtrend in the markets.

The cr@p has been thrown and will soon reach the fan IMO

 

[Go8688]

i am out too,,6k is down the drain,,, hope this doesn't fall below 20's....
anyone has any idea when is the end of the tunnel?

 

[Risky Trader]

I think I am seeing the light at the end of the tunnel.....

Oopps!!!!

That was just MHL miner got lost in the mine...

false alarm.....