cudeco(cdu) trading - representations, page-388

Hi CDU'ers,


The following is the text of a letter that I have forwarded to Mr. Greg Medcraft,Chairman, Australian Securities and Investments Commission, on the 3rd June, 2013, concerning CuDeco(CDU) Trading:-

"Your ref. CCC11\0338 – CuDeco(CDU) Limited – Trading.

Dear Mr. Medcraft,

I refer to my earlier representations to you on the above matter.

I wish to draw your attention to the shorting/churning activity for CuDeco(CDU) Limited trading for the month of May, 2013.

I realize that I am a novice in the share market, and that I don’t possess the necessary skills to be a successful trader. However, you only have to study the trading of CDU securities for the month of May, 2013, to see that all is not as it normally should be when it comes to shorting/churning being illegally practiced.

So, I have provided, hereunder, the details of the daily trading figures for CDU securities for May, 2013.

This will enable you to see the consistency of the patterns being used at the present time by those shorting/churning CDU securities on the Australian Securities Exchange(ASX)







May.Traded. Shorted

01st.119,631 46,640 39% shorted. Down 1c.
02nd.278,872 94,547 34% shorted. Down 17c.
03rd.099,295 28,650 29% shorted. Up 2c.
06th 132,166 26,940 20% shorted. Up 16c.
07th.147,831 76,325 51% shorted. Down 1c.
08th.312,434 115908 37% shorted. Down 5c.
09th.250,561 53,774 21% shorted. Up 7c.
10th.198,815 58,652 30% shorted. Up 6c.
13th.287,274 95,235 33% shorted. Up 14c.
14th.137,358 28,526 20% shorted. Up 8c.
15th.194,882 50,464 25% shorted. Down 12c.
16th.191,557 34,552 18% shorted. Up 1c.
17th.304,819 95,122 31% shorted. Up 9c.
20th.156,790 64,548 41% shorted. Down 5c.
21st.123,871 19,412 15% shorted. Up 1c.
22nd.163,522 36,198 22% shorted. Up 7c.
23rd.244,078 76,375 31% shorted. Down 12c.
24th.212,921 71,373 33% shorted. Up 2c.
27th.421,973 95,300 22% shorted. Down 22c.
28th.569,211 96,065 17% shorted. Down 5c.
29th.304,577 36,554 12% shorted. Up 2c.
30th.260,437 48,941 18% shorted. Up 1c.
31st.184,974 48,911 26% shorted. Up 3c.


This has resulted in an average of 230,000 CDU securities being traded daily,along with an average daily 28% of this stock being shorted.

The overall price movements of CDU for the month of May, 2013, was a gain of 80c and a loss of 79c. A net gain of 1c as a result of the capping undertaken.

A company trading some 230,000 shares daily on average out of some 200 million shares on issue, to my mind, would indicate that the Cornerstone Investors, Institutional Holders and other long-term CDU shareholders are holding most of the stock, and are apparently not interested in selling. These shareholders are waiting for mining to commence at Rocklands, and to receive the likely quarterly dividends which are imminent soon after shipments of native copper are made .

This, therefore, only leaves a small percentage of CDU shares available at any one time for purchase on the market. In effect, it is left to pumps and dumps to loosen CDU shares from those, who because of various reasons,
cannot hold onto their CDU securities and are forced to sell them.

This is magnified further with CuDeco Management not needing to issue a DFS, which makes many Institutions and Funds, ineligible to buy CDU stock, within their purchasing guidelines. Thus, trading in CDU is minimized and gets limited Public support.

It is a question of fairness to all the other CDU shareholders, if short selling is used in conjunction with the accumulation of CDU shares.

Such a practice, identifies more with market manipulation, rather than fair trading. This is because the share price is either over-valued, which would justify shorting, or if it is under-valued, would justify buying.

So, to be doing both, and to be side-stepping fair price discovery on covering, reflects badly on the System. It is also likely to prevent the marke from establishing a fair price for a share based on genuine market forces.

Such dubious trading churn is a poor substitute for genuine buying and selling. It is most likely that this is what CDU has been experiencing this month of May, 2013. Moreover, the absence of such illegal shorting/churning
would probably have resulted in the CDU share price being higher than it is.

Therefore, as I see it, shorting/churning at high percentages on a daily basis,can only suppress the momentum of a rising share price when executed
at critical points in the day’s trading, and when few shares are being offered for sale.
The shorting/churning of CDU securities daily, as is happening now at such high percentages when CuDeco(CDU) Limited is going into production, and it could be an early start, is suspicious. Such practices in the ASX are illegal.

My motivation in the matter is to try and enforce some form of transparency to the market and for CDU shareholders. In the case of CDU very few shares are on offer for sale, and if the illegal shorts are taken out,
undoubtedly, the CDU share price would have responded much faster than it has done.

The need for transparency is high-lighted in the case of CuDeco by a share price that doesn’t respond to the news in the way CDU shareholder expect. Especially, when CuDeco Management are making strong operational gains and making exciting new discoveries at Rocklands South and other
areas of the Rocklands and adjacent tenements under their control.

It can be seen that there is no way of knowing what the real position is with shorting/churning. Churning is illegal, therefore, it should not be happening to CDU securities.

The shorting/churning too, affects all Superannuation Fund contributors in the longer term. They will all get lower returns from their Fund.


On another matter, I requested ASIC to do an investigation for me into the trading of the employees and the clients of F...... S........... since the release of the CuDeco Resource update on the 18th August, 2010, and to investigate the person or persons that completed the analytical report including their qualifications and the data base and technical information that they relied on to come to the recommendations for shareholders of CuDeco to sell their positions in the company.

You have not as yet responded to my representations on the
“F...... S...........” document. I would welcome a reply so that I can consider my position.

In view of the foregoing, and in combination with the irregularities of trading evident in the “CuDeco Shareholder Research” document previously advised to you, I request that a thorough investigation be undertaken by ASIC to bring about a resolution of this rather long outstanding problem.

A copy of this letter is being forwarded to the Hon. Bernie Ripoll, MP.Private Secretary to the Treasurer, Private Secretary for Small Business,seeking a Government Enquiry. Also, to the NSW Police Force to follow up their on-going investigation for me into the unsigned
"F...... S...........” document, as to whether any criminality has occurred in that State.


Yours sincerely,

Maxw'



Referred for the information of CDU shareholders concerned.


cheers,


Max