announcement, page-8

re: announcement - here it is... MiltonBrown...

Yes, so many things pointing to "other stuff" to be announced shortly...and given the recent activity in the shares, it is clear that news tend to move this stock way before it gets released.

In light of this, I suspect tonights announcement may just be the ASX's way of saying, "we are keeping an eye on you".

Strictly (legally) speaking, I suspect LEG may have done nothing wrong and may well have been playing by-the-book with their earlier "we know nothing" response to the ASX...but as we now know, given the nature of the follow-up announcment, I suspect they will have to be a little more careful with future announcements.

To be fair however, leaks can often have nothing to do with management...afterall, drilling results go though many hands before finally reaching a stage requiring official disclosure.

Even before the samples get to the labs, we have the ground crews who can see what is happening, as well as the on site geos who often conduct basic on site analysis when they see something of interest...and of course, we then have the labs themsleves, with their various technicians, none of whom have been cleared by ASIO or anything...LOL

As I understand it, management are required to make an announcement as soon as they become aware of any information of a material nature effecting the company. There are specific guidelines regarding drilling results, acquisitions, capital raisings, etc...however, all of these still result in certain parties becoming aware of sensitive information long before the general market.

If someone decides to act on this information, they are breaking various insider trading laws...but in spite of this, it seems to happen all the time.

I am constantly amazed at the ASX's lack of activity in this regard.

I'm sure it wouldn't be too hard to find out the identity of many of those "early" traders that somehow always manage to buy just before good news. They could then do a little research on these individuals, checking phone records, associates, personal contacts, friends, family, etc, in an attempt to track the flow of information back to the company.

I'm sure such tactics would be readily used in the hunt for a murderer or pedophile, so why not do it for insider traders?

Is it illegal or not?

Cheers!