depth, page-23

Hi zzedzz,

You go on and on and list many items to subject CuDeco Management to incompetence in their efforts in building a copper mine at Rocklands.

You claim lack of a DFS and the perceived uncertainty of the CUEq. reporting. Yet you and some others pronouncing your views are strangely silent when the issues raised in the "Cudeco Shareholder Research" document are mentioned .

This well researched and informative tome should be read to appraise you of the true situation in relation to CuDeco(CDU) Limited.

The blog numbered 6.5(lodged with the Senate as part of the Inquiry into ASIC) has some irrefutable facts;

E.G. “a good portion of the trading undertaken is likely to be associated with substantial losses especially after the share price slump circa August 18,2010, where institutions didn't actually walk away from their own shares in disappointment as purported by ASIC. They did however engage in extra ordinarily levels of churn (not net selling) that was chiefly responsible for destabilising the market. The institutions actually showed a net increase in holdings in the aftermath to the share price take down.

Despite a disappointing share price the frenzied trading activity of corporate and institutional holders actually speaks volumes about the merits of the stock. Concentrating on what is occurring at registry helps to sidestep confusion caused by a share price that responds dramatically to perceived bad news yet doesn't respond at all to exceptionally good news as has been, the case upon resumption of trading after voluntary suspension this year(2013) in late April.

Influential corporate identities wouldn't be bothering to impact trading to the extent they have if they didn't think the company was worth investing in.

Over the 15 month period and particularly following the resource announcement of August 18 2010 institutional holders as a group have accumulated close to 20,000,000 shares. Their actions strongly contradict ASIC's ruling in relation to August,2010, CuDeco trading where they attributed the share price collapse to holders being disappointed with the company's resource because of raised expectations occurring four years earlier.
That particular” view” just doesn't fit the pattern which is embodied into the trading data.

The executive summary dealing with Cartel Concerns found

5 institutional shareholders accounting for:

70% of all registry movements over 2.5 years and;
85% of all registry activity over the first six months of 2012.

2 institutional shareholders in their own right accounting for:

50% of all registry activity over 2.5 years and:
70% of all registry activities over the first six months of 2012.

Institutional dealings can be characterised by high levels of churn with shares being passed back and forth between each resulting in extra ordinarily registry flows such as:



Citicorp nominees Register

Net 124,057,631. On 123,164,692. Off 892,939.

National nominees Register

Net 99,639,309. On 99,615,532. Off 23,777.

The symmetry of share flows and the ease by which large volumes of selling and buying have been accommodated by the market are difficult to reconcile with genuine trading and suggests that the market has been dominated by fund managers pursuing suspicious investment objectives.

There is a wealth of information in the "CuDeco Shareholder Research " document that suggests the so called market is a confection, certain groups or persons are controlling the CDU share price and in the absence of an active Regulator, the ASX will continue to be used for nefarious purpose by these persons.

Who is behind these nominee companies?

Who owns the six servers connected to the ASX main computer,and are gaining an unfair advantage to the rest of the market ?

Possibly an examination of Appendix 2 may refresh the minds of investors of how large Investment Banks treat the rest of the market , Big or Small ,

“An indication of the extent of corruption impacting Financial Markets , showing links and fines incurred by Major Investment Banks in recent years “.

Instead of trying to provide answers to frequently raised questions which should rightly be the province of CuDeco Management, working for CDU shareholders; why not let us ask for answers to questions raised in the CuDeco Shareholder Research" document.


cheers,

Max