re: Ann: Ceasing to be a substantial holder f...
OzHerald wrote: > how was having a major shareholder such as Monax a bad thing?
Because Monax have financial troubles, and they have been selling down their MEU holding, and selling out ... at new low after new low ... in an act of serial desperation to find money ... They have effectively been flooding the MEU market with shares. The problem occurs because the concentrated holdings of one large shareholder (MONAX) have not been replaced by another large shareholder ... but spread around amongst the market ... so the effect has been rather like a capital raising that raised no capital for MEU, but did raise some money for Monax.
All of which may be quite nice if you are looking to accumulate some MEU at a great price ... and not so nice if you are an established shareholder looking for the price to bounce back to fundamental value ... only for Monax to dump a few more million MEU onto the market at an even lower price. That process is reaching the end of its course, so expect to see the supply side of MEU dry up over the next few months.
MEU Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
