Meridian Petroleum (MRP) - Heading for Break-Up?

I have been having a look at MRP - it's an intriguing stock which the City seems to have fallen out of love with. The Company has a market capitalisation of £6.8 million but is producing around £500k per month from one producing gas asset (Orion in Michigan). The valuation seems to take no account of its assets in Southern Australia or its other assets in the USA.  Its management team seems to lack the means of delivering any additional revenue as they have no upstream experience, including Stephen Gutteridge, Chairman, whose only previous experience is in gas storage.  The share price has drifted down from the high teens to a current share price of 7p since the previous CEO left (who was responsible for bringing online its only producing asset). The CEO's departure followed close on the heels of a disastrous 11p placing give-away with the bucket shops by Gutteridge, when the stock was trading at 17p. I understand a number of acquisition approaches have been made, including a very recent attempt to purchase its Australian licences at a very substantial premium (more soon on this).  All have been refused by Gutteridge. Management seem content to line their own pockets without the need for further production. I question whether this team is capable of realising further value for its shareholders. The only solution seems to be a forced break-up of the group which could presumably closely follow the board's refusal to cooperate with suitors. Should make for an interesting AGM, which will be held on Thursday 12th June 2008 at the offices of Grant Thornton, 30 Finsbury Square, London. I may attend and ask some pertinent (or impertinent questions). All in my opinion and no advice intended.

We Won Large!

The Conservatives secured a 7,860 majority - with a swing of 17.6 per cent from Labour, with 49% of the vote.

Boris Catapults Greens

Boris brought the house down during his first question time. He was asked by the Greens if he had considered their alternative plans for a new means of spanning the Thames. Crikey what's this? Boris beamed enthusiastically.  He then drew on his knowledge of the classics - Caesar propelling his troops across the Rubicon. "Do you envisage a kind of catapult?" he asked, to much merriment.

Brown Heads for Bunker as Air Raid Warnings Sound

Brown "had his own dog sent back to bite him" today during PMQs when he was asked by David Cameron, why he was not going to justify his record on the streets of Crewe. He answered he was relying on the custom that PMs do not do by-elections. Big Dave then quoted Tony Blair who previously said on his way to a by-election that he preferred to ignore this convention, when the result mattered, and lead from the front - unlike Gordon who would rather hunker down in his bunker. Definitely worth another look. Details.

Labour heading for Crushing Defeat in Crewe

An ICM poll for The Guardian this morning shows the lowest levels of support for Labour, since records began in 1984. The poll has the Conservatives on 41 (up two), Labour on 27 (down 7) and the Lib Dems on 22 (up 3). Brown is behind David Cameron on every aspect. Alarmingly for Labour, of the people who voted Labour in 2005, three quarters think Blair was a better Prime Minister than Brown. Details.

The Independent also has a new poll out this morning for the Crewe and Nantwich by-election, which has the Conservatives 13 points ahead of Labour, their largest showing to date. Labours’s surge tactics and negative campaigning has certainly paid off (for the Conservatives!). Details.

Breath of Fresh Air

Today, David Cameron spoke out about how people cannot take any more tax, and how desperate the country is for some relief from all this taxing and wasting we have become so used to under this government. In a speech in Birmingham, he called for the proportion of national income used for public spending to be cut "to create the space for cutting tax". See full details.

Electoral Bribe Backfires!

Ha Ha! The Supreme Leader’s £2.7bn unfunded electoral tax bribe has backfired spectacularly. The Conservative lead in Crewe & Nantwich has doubled, according to an ICM poll for the News of the World today. The poll places the Conservatives on 45% against Labour's 37%, suggesting a Conservative majority of about 1,000 - with a 12% swing. The under-35s have turned against Brown with venom, with 56% of them saying they will vote Conservative.  Some 24% say the tax bribe has made them more likely to vote against Labour and only a meagre 4% say they are more likely to vote Labour as a result. Oh dear! A new Yougov Poll in today’s Sunday Times puts the Conservatives on 45% some twenty points ahead of Labour! Details.