where to from here, page-19

It has been a while since I started this thread. At first I was a bit hesitant but now I am glad I did because it has created lively discussion and debate. That is the good thing about HC - the exchange of ideas, good or bad.

NightStalker – I have appreciated your posts which keep us all in order. It needs a level head to keep us on track. It is so easy to get our heads in the clouds but we need to keep grounded. It is good to keep asking questions. And with the new board we will need to keep on asking questions.

Hi Engo – I agree Pynes and Kestell did spend a lot of money getting control of IDG. My question is (with tongue in cheek), was this in their role as and on behalf of shareholders or just personal gain. They gained control through companies with dubious backgrounds. This in itself is not wrong – just business plays – but my question was ‘what is their personal gain?’ After looking through the annual report the answer is clear. It is the free options that they glean. If their exploits are successful then their options will be gold – if not then they will not be out of pocket.

I was wondering why the SP kept shrinking during the SPP. There was little incentive for the mgmnt to release good news if they were to award themselves with options. Of course, the lower the SP the lower exercise price of the options. The spin-off of Tusker Gold caused concern for shareholders and prospective shareholders alike – this also kept the share price down. And speaking of TG – who will be the new directors of a company not formed yet? With how many more free options? A low SP means a low setting for the options being thrown over management like confetti.

Like Nightstalker says – spending money to make money. Through companies owned by shareholders – but do the shareholders have a say. We will at the AGM but after the last GM where the old board walked out – do we have the numbers. As gnamp so rightly points out the independence of the board is questionable as they have cleverly gained control of the numbers. The wording of the AGM Notice is just buddies slapping each other on the back telling us how good they are telling us how to vote but if we don’t go the way of their liking then they will do what they want anyway.

In regards to the shortfall of shares and options from the SPP, on 14th Oct the ann said ‘Subject to the Listing Rules, the Board reserves its right to issue the Shortfall at its discretion at an issue price of $0.25 per share and $0.01 per option’ - shareholders were not invited to participate in the shortfall instead Desertfox (Kestell) bought them all. I know he was the underwriter but the 4m options alone he bought for $40k are now worth $300k as quoted today – a cool profit of $260k so far. It always brings me back to the question of trust (and greed). The 8m shares also increase the voting power of Kestell through Desertfox. I wonder if GLI/BIV took up their full quota in the SPP.

I am with cerbera and gnamp (in the hope that I am drastically wrong) and that their own self interest turns into positive action.

I too want to start making positive posts patience – the doom and gloom tone I seem to put forward doesn’t sit well with me but neither do shady dealings with lack of transparency. Most of all I don’t like how the new board think they can walk over the shareholders. It will be interesting to see the numbers at the AGM. I just hope that shareholders don’t go in blindfolded.

And finally Gravscan – thanks for your good advice. I notice you bought shares just before the ann of the spin off and sold again at a loss. Like you I was very apprehensive of the new management as you can see from my posts. Because of this I sold half of my holding at 45c. I wish I had done so earlier but, like many, I was fooled by the GLI/BIV proportional takeover. The other half I kept - just in case I was wrong.

I will be holding them now at least until the AGM so I have the satisfaction of attending the meeting and having my say. It will probably be a voice in the wilderness but so be it.