In the middle of an Australian Stock Exchange bull-run Megasco Limited shares appear to have hit what looked like an all-time low on 12-13 February 2013 when trading closed at 0.135.
Rather predictably the coal seam gas exploration and want-to-be production company sent forth a spinmeister which resulted in this headline in The Northern Star; Future bright for Metgasco.
As one has come to expect of Metgasco, there was apparently no declaration by the resources analyst whose opinion was canvassed as to whether he may have had a potential conflict of interest which might affect the weight readers would give to his pronouncements.
Being employed by the stockbroking firm paid by Metgasco to produce its Broker Reports does appear to be such a conflict and, only the mining company’s desperation for a ‘good news’ headline must have led it to suppose that no-one would notice this lack of transparency.
A lack of transparency which is obviously a deliberate, as the ABC News online article Metgasco share price weakens but outlook positive also failed to mention the mining company’s business relationship with Mr. Prendergast’s employer.
Mr. Prendergast also does not seem to have mentioned that the attractive value Metgasco shares he is busy promoting in the media are classified in ‘his’ 31 October 2012 broker’s report as high risk.
By close of trade yesterday Metgasco shares had only risen to 0.140 - a long way from the $1+ per share in those brief heady days when the market was inclined to believe this mining company's unconventional gas fairy tale.
ASX chart of monthly prices over 10 years for security MEL
By close of trade yesterday Metgasco shares had only risen to 0.140 - a long way from the $1+ per share in those brief heady days when the market was inclined to believe this mining company's unconventional gas fairy tale.
ASX chart of monthly prices over 10 years for security MEL
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