everyone's thoughts, page-11

broshae...

It has been an unusual period for me...with major hits in succession...MNE, RXL, and ICG...all due to placement shenanigans.

Some will argue the falls were results driven...or lack thereof...which is a fair comment, but in reality the "results" were just part of the process...which is one of stripping money from the retail end of the market.

MNE went hard and talked themeseles up whilst presenting all manner of results suggesting they were possibly on to something special...the fact they appeared to be "in-the-field" types gave the market the confidence it needed to price the stock at the high-end of speculative expectations...but they needed good hits to support the rhetoric.

They didn't get them...so down she came.

ICG was more or less a mirror image of MNE in this regard...talking themselves (and their possible results) up to the point the market was once again happy to factor in a high-end value range in anticipation of good results.

But once again results failed to excite...to put it kindly!

RXL was a little different though...but in being so, highlights the hidden pattern in all three stocks that indelibly links them to the placement process.

RXL hit significant visual results...and rightfully the market bought them up...so far, another MNE/ICG scenario.

But...then RXL released its results and unlike the other two they were very good, at the very least enough to justify all if not most of the rise...but once again, it too was sold off savagely.

The one common denominator...all three stocks did a CR at the lows after they were sold down!

This is the key to the problem...whilst the market may well react to news...good or bad...the "placement process" appears to falsely generate significant interest in the stock on the way up...and severly pulls the rug from under it on the way down...good news or bad!

What we are are talking about is falsely generated volatility...the kind that generates major swings, from which those aware of "what and why" (ie those associated with the CR's), can profit...and possibly fund said CR's!

What concerns me is the apparent ease in which this manipulative process transpires, the collateral damage suffered by the retail end of the market...and the apparent tacit approval this whole process enjoys from the ASX/ASIC.

It is not just limited to the small specs mind you...but it is in the small-specs that we see such large percentage swings that can wipe-out those not fleet of foot.

In the big end of town it plays out more subtlely...look at all the "placements" rushed away at the bottom of the market during the GFC for example...free gifts for all and sundry "in the know" from the likes of CBA, etc...

Anyway...L digress...as for ICG, MNE and RXL...I bet my left nut a simple investigation of all three stocks...linking the accounts of those who eventually took stock in each CR, with those who were selling prior to each CR...and you will flag more cases for possible insider trading (in any one of these stocks) than what ASIC/ASX would typically prosecute in an entire year!

Cheers!