analysis of top 20 changes & conclusions, page-39

Report as at 30 September 2010

Rank Name No. %
1. NATIONAL NOMINEES LIMITED 141,475,833 8.68
2. MR ANDREW WINSTON DOYLE 106,339,647 6.53
3. MR JAMES MICHAEL O'DWYER 57,011,770 3.50
4. TRAVIS REDDY + ELINA REDDY 37,900,794 2.33
5. MR KAI LIU 35,000,000 2.15
6. CITICORP NOMINEES PTY LIMITED 27,612,588 1.70
7. JP MORGAN NOMINEES AUSTRALIA LIMITED 24,310,935 1.49
8. DUTCHESS OPPORTUNITY FUND II LP 24,078,022 1.48
9. O'DWYER INVESTMENTS PTY LTD 23,687,184 1.45
10. MRS VIRGINIA WARNECKE 15,028,577 0.92
11. ATLANTIC INVESTMENT (AUST) PTY LTD 15,000,000 0.92
12. ETRADE AUSTRALIA NOMINEES PTY LIMITED 11,394,127 0.70
13. DELPHI SYSTEMS PTY LTD 11,325,243 0.70
14. RELGAN & CO PTY LTD 11,250,000 0.69
15. MR GORDON MENZIES WILSON 11,032,119 0.68
16. MALCO (PNG) LIMITED 10,000,000 0.61
17. MR MARK PETER O'BRIEN + MRS LOUISE MARGARET MARTHA O'BRIEN 10,000,000 0.61
18. MR DAVID JONATHAN GREGORY 8,800,000 0.54
19. MR STEPHEN PERROTT 8,500,000 0.52
20. COMBINED VISION PTY LTD 8,450,512 0.52
TOTAL 598,197,351 36.72



Comments (changes are aproximations)

From 31/08/2010
1 NATIONAL NOMINEES LIMITED : Up 5 mil
2 MR JAMES MICHAEL O'DWYER : unchanged
3 MR ANDREW WINSTON DOYLE : Up 76.75 mil
4 ANZ NOMINEES LIMITED : Out(Down 29.5 mil?)
5 TRAVIS REDDY + ELINA REDDY : Up 10 mil
6 CITICORP NOMINEES PTY LIMITED : Up 1.2 mil
7 O'DWYER INVESTMENTS PTY LTD : Unchanged
8 DUTCHESS OPPORTUNITY FUND II LP : Up 5.6 mil
9 MRS VIRGINIA WARNECKE : Unchanged
10 DELPHI SYSTEMS PTY LTD : Up 2.26 mil
11 MR STEPHEN PERROTT : Unchanged
12 MR GORDON MENZIES WILSON : Up 3 mil
13 MR DAVID JONATHAN GREGORY : Up 1.1 mil
14 MR ROBERT WILSON : Out(6,612,767)
15 COMBINED VISION PTY LTD : Up 2 mil
16 MR ANDREW WINSTON DOYLE (2nd acct) : Out(6,195,000)
17 MR TIN SHEUNG LAU : Out(5,600,000)
18 MR PETER BICEVSKIS : Out(5,500,000)
19 MR PAUL JEREMY HAY : Out(5,385,743)
20 MR PHILIP GLENN BAILEY : Out(5,239,308)


New in list:

5. MR KAI LIU : 35,000,000
7. JP MORGAN NOMINEES AUSTRALIA : 24,310,935
11. ATLANTIC INVESTMENT (AUST) PTY LTD: 15,000,000
12. ETRADE AUSTRALIA NOMINEES P/L : 11,394,127
14. RELGAN & CO PTY LTD : 11,250,000
16. MALCO (PNG) LIMITED : 10,000,000
17. MR M P O'BRIEN & L O'BRIEN : 10,000,000

Percentage of shareholders in top 20 increased by 2.11%.

Significant private holders by and large increased their holdings, presumably with the new issue.

Some new larger holders.
Malco back in after previously trading out of the top 20.

ANZ Nominees - I seem to remember they took this on as a temporary holding? Maybe gone to JP Morgan nominees & ETrade nominees?

Equity line of credit (presumably all Duchess)

At 1/09/010 : 18,478,022
Issues from equity line of credit-
02/09/2010 at $0.009 : 7,500,000
09/09/2010 at $0.008 : 8,000,000
16/09/2010 at $0.008 : 23,600,000
29/09/2010 at $0.008 : 15,078,027
----------------------------------------------------
Total : 72,656,049
Less Holding at 30/09/2010 :-24,078,022
----------------------------------------------------
Sold? : 48,578,027
----------------------------------------------------

So, I think we can reasonably come to the conclusion that equity lines of credit sales (Duchess) are the ones that have been keeping a lid on the share price. As soon as they get them, they are unloading whatever it seems the market will bear. The bottom price is $0.008, what they have paid for most of them.

Many of these will have been taken up by some of the new large holders who one would presume will sit on them for a while to make a profit, plus some traders. However, I would think traders would be pretty wary here though it's still an opportunity for those who want to invest at a low price (if there is anybody left in that category).

It's still happening.

Given these actions, presumably, shares issued by the line of credit are going to continue to end up on the market fairly soon after issue unless they change their attitude and decide to hold for a while and let the price rise. Noone can have any confidence about buying at the moment as we have no idea how much longer this will go on, contrary to the board's statement that the share issue would relieve the need to use more of the line of credit for a while. Why are they doing this at the moment?

I think an explanation is due from Dr. Finnear.