MAE 0.00% 0.0¢ marion energy limited

flows

  1. 1,860 Posts.
    lightbulb Created with Sketch. 494
    There are 2 possibilities re flows:

    1 We don't have any, in which case nothing is likely to happen over winter, it's unlikely the cash will last until next summer - game over.

    2 They have flows, but are choosing not to release them.

    As I have posted before, I firmly believe the timing of any flow announcements will be to coincide with the directors grab for more options. The last thing they would want is a sp of 30c while they have no options - not that that's likely to happen. From PCs point of view he owes us smaller holders no favours, most of us voted against his reelection. JC is so far removed from us shareholders, he probably doesn't give a second thought to us being peeved off - he didn't even bother coming to the AGM! (can anyone think of any other company's agm where the ceo didn't attend?)

    The rumour mill suggested we'd get an announcement this week, now it is suggesting there wont be one before Christmas. If this turns out to be true, I can only assume they are having problems getting the numbers for their option grab (nothing to do with flows!). Maybe the holdup relates to ongoing negotiations with the larger holders over their proposed option package. I'm sure they'll first ask for more than they expect to get in order to have a satisfactory fall back position. In any case the negotiations could take some time

    Newer holders will probably think I'm being cynical, but those that have been around this stock for a while will know its all about money - director options.

    However they can't hold things up for too long. It is going to take almost 3 months from first calling an EGM to getting the cash from the planned Rights Issue. They will need that cash by March/April. They can hardly announce the 15c RI if the sp is 10c. Of course there is always possibility 1 (above)
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.