chinese begins multi-billion afghan project, page-40

G'day Cudai

I was asked to give my thoughts on strategic partners, and I did. Because we are not getting fed any information, all we can do is speculate on what is happening, so speculate is what I did. Although I was speculating, I would like to think that my speculations were not too far feteched, and even though they could be wrong, I still beleive that they are realistic.

I never said that an announcement WILL be made on August 31st. I said it reads to me, that an announcement will be made on strategic partners prior to August 31st, and that an announcement on finance would be made prior to November.

I never said that Ken Talbot knew for sure that strategic partners had been secured. I said that Ken would know more then most, and that my take was that he was prepared to invest that $5 Million because he was confident that strategic partners had been lined up. Once again, it was speculation, and I never claimed it to be fact.

I did say that China needed cheaper iron ore, but I never said that SDL is the CHEAPEST. What I said was that SDL had CHEAPER Iron Ore, not the CHEAPEST. There is a difference there.

If you are going to quote me, at least get it right.

Now onto your questions.

1. Why has the SP gone from 18.5c to 14c.

A. The SP was last at 18.5c on 15th of June. Below are some other factors that you need to also consider as at 15th June.

BHP was $37.50 on 15th June, they are now $32.65
RIO was $77.45 on 15th June, they are not $47.85
All Ords was around 4000 on 15th June, it is now 3790

As you can see, the dip in share prices is consistent with BHP, RIO and All Ords. Combine this with the fact that we have had no news, apart from the retirement of GJ, and that fact that SDL is a speculative share, and I think this answers your question. It is also worth noting that the volume has been quite low.


2. What is SDL currently doing?

A. Without sitting on the board, and with no news, it is hard to say for sure, all one can do is speculate. My belief is that they are finanlising the deal, in preperation for an announcement, but I am open to the fact, that they may still be trying to secure strategic partners.


3. Why no news on JV?

A. Because nothing has been finalised. They either don't have any news on Strategic Partners, because they are struggling to secure them, or they have secured strategic partners and are in the process of clarifying the finer details prior to making an announcement.


4. Why 2 supports broken within a week.

A. Refer partly to question 1. Also, although the support has been broken, the volume has been quite low. To me, this indicates that there are a lot of shareholders happy to sit tight on the holdings in preperation for an announcement, while it is the traders that are trading in and out of the stock. We are not seeing a desperation of selling.


5. Large single transaction over 800,000 at end of day.

A. Not really too sure on this question. Maybe someone else can answer it


6. Why are there more sellers then buyers

A. Although there are more sellers then buyers, the volume of both are pretty low. If it was a fire sale, then there would be a massive volume of sellers, and an even smaller volume of buyers. Seeing that we are officially past the middle of the year, I think that a lot of shareholders have reached there holding target, and are now quiet happy to sit and wait for an announcement, and that is one reason as to why there might be less buyers. The lack of news also has an impact.


7. SP makes a lower low and higher high, is it a downtrend?

A. Not sure with this question. Maybe someone else can provide an answer on this.



So there we go Cudai, I have made an attempt to answer most of your questions. I would like to hear what your thoughts are in response to my answers.

P.S, please take note of my Disclaimer.

Cheers