short sellers rampant, page-27

Everest2011

Thank you and all the other shorters for shorting the stock recently and in the past, it has helped me almost double my original holding in LNC. I have a few comments about your comments:

1) "the stock is mostly held by retail investors (punters)"
The latest annual report indicates the Top 20 holders hold 62% with Peter Bond and CS holding approx 48%.

2) Foreign tax issues
There are no foreign tax issues. Tax is payable based on your residency not the location of your assets. The transfer to the SGX doesn't constitute an event for tax purposes either (not that you were implying that).

3) Your opinion on LNC's valuation is purely an opinion. I have my opinion and I am sure I value the assets higher than you. At least I have literature supporting my valuation whereas I doubt you do.

4) Possible capital raising
The capital raising is not being done to keep the company afloat but to expand/initiate significant projects. You and others have an issue with that because there is the expectation that the raising will be made at a discount to the stock price at the time of the announcement. Is it plausible to think that Peter Bond has already lined up investors in Singapore that are willing to pay a premium to the share price? Is it possible that the listing on the SGX will be at a higher price? Who knows?

5) You were right to think that some investors would not like the move to the SGX and some selling is expected. Shorters then turned "some" selling into a lot of selling. I found this and previous short campaigns to be irrational selling so this becomes a buyer's dream come true.

6) Congratulations on your recent trade and telling us all about it. I have been invested in LNC for 6+ years and I play the long game. I will not admit if I have been successful or not because I find that disclosure to be uncouth. For all the capitulations there have been recoveries and spikes. Do not forget that LNC floated at $0.25 in 2006.

7) If you can't put a value on UCG higher than zero then why are companies willing to pay multi-million technology license fees?

Feel free to short again, I will be here waiting with a big smile.