reason for sp rout. boa may soon offload imo, page-11

Meta, I will try my best to draw the dots for you.

Yes ML is part of BOA. During the GFC they effectively merged. I say ML because most of the shares belong to Mathews Capital. I can't verify how much as at today but can say that from the Annual Report as at 23rd August 2011, Merrill Lynch (Australia) Nominees Pty Ltd held 4,914,575 shares (5.32% of the then issued capital).

I haven't seen an initial sub holder from Mathews Capital which suggests to me that not all those shares were theirs and therefore were holding less than 5% of the issued capital then and recently. Merrill Lynch is just a custodian in CLR.

Example if you hold shares say through UBS and ask them to have them held under their name rather than your own individual/entity name it would show up on the share register as something like UBS Nominees Pty Ltd.

If you look closely to BOA's recent Form 603, the appendix states "Prime brokerage Agreement/Global Master Securities Lending Agreement". Look also at the parties to the agreement. Mathews Capital etal trustee for Sabre Fund is part of the agreement. The Sabre Fund is a Hedge Fund.

These hedge funds use leverage to increase and decrease exposure (short selling etc).

I have no idea of the current strategy of Mathews Capital. My understanding is that MC have effectively given BOA roughly 5 million shares for extra buying/borrowing power without having to sell those shares.

This is my basic understanding. I have no doubt it's a little bit more complicated and sophisticated. Ultimately, only they know what's going on.

They (Mathews Capital) have been long the coal/resources market right up until end of 2011 and perhaps maybe why they are entering into these agreements with BOA. Even hedge funds get their strategies wrong or it doesn't work well.

Nevertheless, the current sentiment for coal is very weak. A lot of micro minded investors out there.