cudeco(cdu) limited - representations, page-33

Hi CDU'ers,

The following is the text of an email that I have forwarded on the 3rd September, 2013, to the Hon. Bernie Ripoll, MP,Parliamentary Secretary to the Treasurer.
Parliamentary Secretary for Small Business. concerning the trading of CuDeco(CDU) Limited Securities

"Dear Hon. Bernie Ripoll, MP,

For your information. Hereunder is the text of a letter that I have forwarded on the 2nd September, 2013, to Mr. Greg Medcraft, Chairman, Australian Securities and Investments Commission, and the Senate Economics Leglislation Committee, concerning the trading of CuDeco(CDU) Limited Securities on the ASX for investigation.

Yours sincerely,

Maxw

----- Original Message -----
From: maxw
To: Economics, Committee (SEN)
Sent: Monday, September 02, 2013 12:25 PM
Subject: CuDeco(CDU) Limited - Trading

Senate Economics Legislation Committee.

Mr. ..... ......,

Senior Research Officer.

Dear Mr. ......,

Further to my letter of the 4th August, 2013, on the above matter, would you kindly include the undermention e-mail to the correspondence that I have had with
"1 The Chairman, Austalian Securities and Investments Commission(ASIC)" to my submission to the Senate Inquiry.

Yours sincerely,

Maxw...
2nd September, 2013,

Mr. Greg Medcraft,Chairman,
Australian Securities and Investments Commission,
Level 24, 120 Collins Street,Melbourne. Vic. 3001

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

Dear Mr. Medcraft,

I refer to my earlier representations to you, the latest was on the 4th August, 2013,on the above matter.

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

This follows up the trading of CDU securities for the months of May, 2013, June 2013 and July, 2013. You can see that shorting/churning continues to decimate the share price of CDU as a consequence of these apparent illegal trading practices.

Therefore, I have provided, hereunder, the details of the daily trading figures for CuDeco(CDU) Limited securities for August, 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)

2.

Number of Number of Percentage of

August, 2013. CDU Traded. CDU Shorted. CDU Shorted. Price Movement.

------------- --------------------- ---------------------- ------------------ ---------------------

1st. 606,760 159,832 26% Up 3c.

2nd. 785,343 117,102 15% “ 1.5c.

5th. 727,557 210,020 30% “ 1c.

6th. 574,449 180,387 31% Down 5.5c.

7th. 1,099,055 366,408 33% “ 9c.

8th. 2,086,133 791,171 38% “ 11c.

9th. 1,636,894 435,599 26% Up 4.5c.

12th. 3,700,026 324,649 9% “ 26.5c.

13th. 2,420,041 421,741 17% Down 3c.

14th. 2,100,596 278,817 13% Up 0.5c.

15th. 1,510,059 393,402 26% Down 2c.

16th. 1,646,093 251,956 15% 0c.

19th. 1,325,420 162,618 `12% Up 5.5c.

20th. 1,667,837 338,956 20% Down 6.5c.

21st. 15,195,737 1,529,509 10% “ 6.5c.

22nd. 3,597,378 230,124 6% “ 2c.

23rd. 2,516,379 483,318 19% “ .5c.

26th. 1,939,879 223,779 11% Up .5c.

27th. 1,521,010 194,813 12% Down 6c.

28th. 1,079,049 180,635 17% “ .5c.

29th. 898,192 179,663 20% “ 2.5c.

30th. 1,033,259 149,410 14% Up 1.5c.

This has resulted in an average of 2,250,000 CDU securities being traded daily in August, 2013, along with an average daily 20% of this stock being shorted.

The overall price movements of CDU for the month of August, 2013, was a gain of 44.5c and a loss of 55c. A net loss of 10.5c. in the CDU share price as a result of the shorting/churning undertaken.

Aggregate trading of CDU for the four months May, 2013, June, 2013,July, 2013 and August, 2013, revealed the following:

May. 5,297,849 CDU shares traded of which 1,399,012(27%) were shorted.

June. 13,162,693 CDU shares traded of which 3,073,694(23%) were shorted.

July. 24,180,916 CDU shares traded of which 5,340,454(22%) were shorted.

August. 49,666.146 CDU shares traded of which 7,603,732 (15%) were shorted.

So the monthy aggregate trading of CDU shares for the four months of May,June, July and August, 2013, was 23,000,000 of which 4,350,000 were shorted.

This represents a shorting of 23% each day of trading over the period.

The CDU share price has dropped from $3.76 on the 1st May, 2013, to $1.465 on the 31st August, 2013 . A loss of $2.295. This is despite the fact that the Chairman, CuDeco(CDU) Limited has reported publicly that there has been no material change or any other change to the company. All Company Announcements have been positive for the imminent mining at Rocklands.

The situation which CuDeco Limited faces, is not fair trading in the true sense. Shorting is an anathema, as it only serves the purpose of enriching a small number of the financial insider elite. In this case, CuDeco and the
vast majority of the ordinary shareholders are financially disadvantaged due to the type of trading being undertaken by a few on a daily basis to destabilize the CDU share price.

A forensic examination into CuDeco could be a test case for the whole of the ASX to determine where malfeasance is taking place and, thus enable changes for the system to operate with integrity and fairness, and provide transparency for all shareholders.

The High Court of Australia has unanimously ruled that the buying and selling of shares on the Australian Securities Exchange(ASX)to create or maintain a share price is an offence of market manipulation.

As the Regulator, ASIC needs to take the necessary further action to remedy the apparent problems represented for attention.

Yours sincerely,

Maxw..."


Referred for the information of CDU shareholders concerned.


cheers,

Max