Ann: AusCann Share Purchase Plan, page-50

I have to admit that it makes no sense to see this stock dropped sharply in 7 of the trading days recently below the 1.05 share offer to reatail investors. The question is who dold the shares? ASX shorts list does not even show AC8. So, the shorts have got out. Big investors bought in at 1.10 so they won't sell for a loss right after buying the shares! The company is small so there is no point shaking the trees to make retail investors falling out to scoop the shares up. The only thing I can think of is the day traders and momentum buyers getting hurt by margin calls as they borrow money to buy stocks. Could this explain the selling to .95 from 1.3? over only a little over 2 weeks? There is no pump and dump! One would think that there will be rise and fall but this baby has been dropping up until yesterday for so many days in a row.

Whatever it is, I may never know. But I think that this company is now cashed up and on the verge of producing pain relievers of more potent strengths than the normal pain killers. More importantly, it is likely to be in the best position to get real products to the shelves.

There is point taking up the share offer! I think the retail investors who really want to get in have been getting in right now between 0.96 - 1.05. Even the bigger players can get in right now without pumping it up by a lot. If the big investors take up the unwanted share offer, then it's great! The company will get extra money to fund more product development activities. Fresh money is always welcomed in this game. I am not buying any more unless it drops 5% under 0.97 or at least stays around 1.05 for many weeks. And I am not buying on borrowed money. Once the news flows from the new activities I expect a big pop and then a long trend up over 6 months.