cudeco(cdu) trading - representations, page-398

Hi CDU'ers


The following is the text of an e-mail that I have forwarded to Admin. CuDeco:

"Admin.
CuDeco


You had a please explain from the ASX this morning.

Do you realise the high incidence of daily shorting which is occurring with CDU trading.

I sent you a copy of a letter I sent to ASIC on the matter for shorting in May. Copy hereunder.


For the month of June so far the statistics are as follows:

3rd. 177,163 traded of which 41,211` shorted.
23% shorted. SP down 6c.

4th. 162,357 traded of which 41,758 shorted.
25% shorted. SP down 4c.

5th. 231,749 traded of which 81,307 shorted.
35% shorted. SP down 10c.

6th. 412,328 traded of which 150,840 shorted.
36% shorted. SP down 9c.

7th. 246,953 traded of which 74,416 shorted.
30% shorted. SP down 11c.

11th. 101,090 traded of which 23,817 shorted.
23% shorted. SP up +1c.

12th. 532,349 traded of which 37,306 shorted.
7% shorted.S P down 12c.

13th. 542,980 traded of which 172,721 shorted.
32% shorted. SP down 14c.

14th 332,178 traded of which 68,626 shorted.
26% shorted. SP up +4c.

17th. 459,047 traded of which 16% shorted. SP down 3c.

18th. 1,272,786 traded of which 304,144 shorted.
24% shorted. SP down 30c.


This constant shorting even with CuDeco announcing good news needs looking into to determine just what is happening to CDU trading on the ASX.

Perhaps, you could approach ASIC on this matter for investigation.

All CDU share holders want is fair trading not constant pumping and dumping at critical stages during the trading hours.

All the best.

Maxw..






Mr. Greg Medcraft,
Chairman,
Australian Securities and Investments Commission, 3rd June, 2013.
Level 24, 120 Collins Street,
Melbourne. Vic. 3001.


Your ref. CCC11\0338 . CuDeco(CDU) Limited - Trading.

Dear Mr. Medcraft,

I refer you my previous representations on the above matter, and I wish to draw your attention to the shorting activity for CuDeco(CDU) Limited trading for the month of May, 2013. I realize that I am a novice in the share market, and haven’t got the necessary skills or finance to be a successful trader. However, you only have to study the trading pattern for CDU securities for the month of May, 2013, to see that all is not as it normally should
be when it comes to shorting/churning.

So I have posted hereunder, for your information,and necessary attention, the daily trading figures for CDU securities for May so that you can you see the consistency of the patterns being used by those shorting CDU.

May, 2013. CDU Trading Figures Each Day.



01st 119,631 CDU shares traded of which 46,640 were shorted. SP down 1c. Shorted 39%

02nd 278,872 CDU shares traded of which 94,547 were shorted. SP down 17c Shorted 34%

03rd .99,295 CDU shares traded of which 28,650 were shorted. SP gain 2c. . Shorted 29%

06th 132,166 CDU shares traded of which 26,940 were shorted. SP gain 16c. Shorted 20%

07th 147,831 CDU shares traded of which 76,325 were shorted. SP down 1c. Shorted 51%

08th 312,434 CDU shares traded of which 115908 were shorted. SP down 5c. Shorted 37%

09th 250,561 CDU shares traded of which 53,774 were shorted. SP gain 7c.. Shorted 21%

10th 198,815 CDU shares traded of which 58,652 were shorted. SP gain 6c.. Shorted 30%

13th 287,274 CDU shares traded of which 95,235 were shorted. SP gain 14c. Shorted 33%

14th 137,358 CDU shares traded of which 28,526 were shorted. SP gain 8c.. Shorted 20%

15th 194,882 CDU shares traded of which 50,464 were shorted. SP down 12c Shorted 25%

16th 191,557 CDU shares traded of which 34,552 were shorted. SP gain 1c… Shorted 18%

17th 304,819 CDU shares traded of which 95,122 were shorted. SP gain 9c… Shorted 31%

20th 156,790 CDU shares traded of which 64,548 were shorted. SP down 5c.. Shorted 41%

21st 123,871 CDU shares traded of which 19,412 were shorted. SP gain 1c… Shorted 15%

22nd 163,522 CDU shares traded of which 36,198 were shorted. SP gain 7c… Shorted 22%

23rd 244,078 CDU shares traded of which 76,375 were shorted. SP down 12c Shorted 31%

24th 212,921 CDU shares traded of which 71,373 were shorted . SP gain 2c. Shorted 33%

27th 421,973 CDU shares traded of which 95,300 were shorted SP down 22c . Shorted 22%

28th 569,211 CDU shares traded of which 96,065 were shorted SP down 5c. Shorted 17%

29th 304,577 CDU shares traded of which 36,554 were shorted SP gain 2c. Shorted 12%

30th 260,437 CDU shares traded of which 48,941 were shorted SP gain 1c. Shorted 18%

31st 184,974 CDU shares traded of which 48,911 were shorted SP gain 3c. Shorted 26%



This resulted in an average of 230,000 CDU securities being traded daily , along with an average daily 28%
of the stock being shorted. The price movement of CDU for the month was 80c gain, 79 cents loss,a truly remarkable achievement.

A company trading some 230,000 shares daily on average out of some 200m shares, to my mind, would indicate that the Cornerstone Investors, Institutional Holders and other long-term CDU shareholders are holding most of the stock and are not interested in selling. They are waiting for mining to commence at Rocklands, and the likely quarterly dividends which are imminent.


This then only leaves a very small percentage of CDU shares available at any one time for purchase on the market. In effect, it is left to pumps and dumps to loosen CDU shares from those, who because of various reasons, cannot hold onto their shares and must sell.

This is magnified, with the lack of a DFS, which makes many Institutions and Funds ineligible to buy CDU stock. So trading in CDU is minimized and gets no Public support.

It is a question of fairness to all the other CDU shareholders, if short selling is used in
conjunction with the accumulation of CDU shares .


Such a practice, identifies more with market manipulation, rather than fair trading.

This is because the share price is either over-valued, which would justify shorting; or if it is under-valued, would justify buying.

So, to be doing both, and to be side-stepping fair price discovery on covering, reflects badly on the System. It is also likely to prevent the Market from establishing a fair price for a share based on genuine market forces.


Such dubious trading churn is a poor substitute for genuine buying and selling

It is most likely that this is what CDU has been experiencing this month of May, 2013.

Moreover, the absence of such shorting/churning would probably have resulted in the CDU share price being higher than it is.

Therefore, as I see it, shorting at high percentages on a daily basis can only suppress the momentum of a rising share price when executed at critical points in the day's trading, and when few shares are being offered for sale.

The shorting of CDU securities daily, as is happening now at such high perecntages when CuDeco(CDU) Limited is going into production, and it could be an early start , is suspicious, and beyond my comprehension.


My motivation in the matter is to try and enforce some form of transparency to the market and CDU shareholders. In the case of CDU very few shares are on offer for sale, and if the shorts are taken out, undoubtedly, the CDU share price would have responded much faster than it has done.

The need for transparency is high-lighted in the case of CuDeco by a share price that doesn't respond to the news in the way CDU shareholders expect. Especially, when CuDeco Management is making strong operational gains, and making exciting new discoveries at Rocklands South and
other areas of the Rocklands and adjacent tenements under their control.

It can be seen that there is no way of knowing what the real position is with shorting/churning.

Churning is illegal, therefore, it should not be happening to CDU securities.

The shorting too,affects all Superannuation Fund contributors in the longer term.

On another matter, I requested ASIC to do an investigation for me into the trading of the
employees and the clients of F...... S........... since the release of the CuDeco Resource update on the 18th August, 2010, and to investigate the person or persons that completed the analytical report including their qualifications and the data base and technical information that they relied on to come to the recommendations for shareholders of CuDeco to sell their positions.

You have not yet responded to my representations on this matter.

A copy of this letter is being forwarded to the Hon. Bernie Ripoll, MP, Private Secretary to the Treasurer,
Private Secretary for Small Business.


Yours sincerely,

Maxw."



Referred for the information of CDU share holders comcerned.


cheers,

Max