Replies to post #35566 on Magellan Energy, Ltd. (MGLG)

[heelsgo1]

I would argue that there is no better time to do a RS if you are thinking of this from management's point of view.

1. They need money, and they will continue to need money until serious revenues come in. (dilution)

2. They still are sitting on big news... and that news is that "MGLG is ACTUALLY FOR REAL producing NG this time and here are the production numbers to prove it." Producing and production numbers would be the catalyst to get this up post RS. Trust me even with a RS, eyes will be on this especially as the dilution to raise more money on a much smaller share structure post RS... drives this back down to .000s.

3. The share structure is out of whack, and with the money the company will continue to need it can only grow even more out of whack, but a RS allows them to start over... while getting the much needed capital.

[Ownwallstreet]

The shares are the key. If they max them out, then its time to worry. I expect once the selling pressure dies down that this thing will bounce up from .0003. Thats only if the selling dries up. Looks like its about done. I assume most sellers today were coming back from vaca and saw what happened and said to hell with it lol. But me, Im too stubborn lol.