hammer and tongues company needs cash, page-12

I had shares in MCE years ago on the Roger Montgomery hype

Luckily I sold at a good profit as the price skyrocketed.

I have followed the company ever since and would stay well away from it.

I don't like management raising capital at high prices and then profits dropping. Yes it is smart to raise capital at high prices, but how fair is it to the people who paid a high price to become partial owners.

Management promotes their product as best in class for offshore, yet make no money. AUD excuse is pathetic, big oil will pay a premium for the best products and if that can't even break even with the exchange rate, why did they bother raising capital for these unprofitable activities.

National Oilwell Varco (NOV) is a (USA) company in the offshore space and have seen its shares, income, profits etc rise plenty in the last 5 years. Many other companies in the space have aswell (CAM) (NE) (BHI) to name a few.

If MCE can't make money in a boom (and reports suggest a doubling of spend in offshore in the next few years) then they are a useless business.

Warren Buffett says buy companies and idiot could run, because one day and idiot will run it. What happens when the idiot doesn't seem to take responsibility for own stupidity? MCE is a lesson in what to avoid in my opinion.

Buffett owns NOW btw.