why?, page-2

HDR management have done an extraordinary job over the last 3 years to grow the company from a capitalisation of around $25m (at 8 cents) to $330m at 71 cents. However most of the sp growth was in 2001 and since it reached a peak of around $1.00 that year management has been struggling to raise the capital necessary to stay in the game - without hurting the sp.

Rather than more placements I think shareholders want a sell down of some equity in projects or at the very least a rights issue. Management also need to ensure that they get the best price possible when capital is raised and this means not giving shares away at a discount in another placement to the UK like in July (at 55 cents). After recent successes the sp should be higher which would help to raise capital more efficiently - but there has been lots of selling that has capped the sp and some shareholders suspect this is by Macquarie. Selling by directors doesn't help!!!

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