Bly

A classic prebound following "get me out" selling recently by a Us fund manager who just cannot risk staying substantial in a stock that has been in free fall from $6 and with no improvement in its operating environment is either in play or going bust. At 8c it would not have been a significant holding, just a blot on his reports each month.

few fund managers will venture in here. Just a few boutiques. Given this stock was widely held by overseas fund managers during the "mining boom" there could be some stale holders. The company has reacted to conditions by retrenching staff and rooftops and scaling back. It can run off product. It hasn't gone insolvent yet, and it will derive cash from running down stock on hand so it may survive.

At 16c now it is just 16c from oblivion, but less than a days trading range of a year or so ago. So it's just an option at this level.

i expect a quick rebound to 20c from whence it fell, and then either a gradual recovery as things stabilise or a sudden takeover offer at say 50c or a collapse in a few months time.

I bought in this week as a trade and will probably hold despite the temptation to sell at 20c, The last time I bought this stock was at 6c preconsolidation on March 6 th 2009, tried to sell at $6, sold 6 only and sold the rest down to $2.40.

I see see it's moved while writing this.....