Ann: Becoming a substantial holder from PPT, page-3

Agree. A number of instos have jumped on it based on substantial holding filings or interviews:

• Cooper Investors Pty Limited
• Perpetual Investment Management Limited
• IML (livewire quote) - Sigma is the stock we're buying. They're in the process of trying to merge with Chemist Warehouse. The risk there is the ACCC doesn't let the deal go through. We think it's worth the risk though. We think it's more likely than not. 90% of the business will be Chemist Warehouse and you'll get the ability to get exposure to probably one of the best retail companies in Australia. They're growing sales at 10% per annum, rolling out stores with that fantastic discount model. And they're going into markets offshore and having huge success as well.

Instos (ASX:HMC and ASX:WAX to name some) that sold are due to the fact they have held this stock over the last few years and needed to trim portfolio positions due to the jump in valuation. Qoute from WAX:

The best example is Sigma Pharmaceuticals (ASX: SIG), which has done the Chemist Warehouse transaction. We’ve been in the company for around two years, we own around just under 5% of the company. At the time we were buying the shares, HomeCo (ASX: HMC) were buying the shares and having done work on HomeCo, there was a family interest, let’s call it with the Chemist Warehouse guy. You are sort of questioning at that time whether something was going on there but in the end, we liked the new CEO of Sigma Pharmaceuticals. We thought they would beat earnings, which they did. We thought they would win the Chemist Warehouse contract because they had newer facilities, and they needed the contract much more than their competitors so they were willing to discount their price. When they won the contract, there was a significant catalyst for the company. And then after they won the contract, you kept hearing news reports saying things about Chemist Warehouse and so forth and we held on to the shares and lo and behold, the Chemist Warehouse merger occurred in November. At that point, you think the shares have gone up, what’s the next catalyst? Well, the next catalyst was actually Sigma entering the ISX200 and that sent the shares from about $1 to $1.30. As you talked about previously, that was a massive weight in the portfolio which we’ve progressively sold down over the last six months into profits, but it’s probably been our most successful stock over the last year or so.