$40 cents club, page-986

Hi Periculum - I'm not so sure it's a total "release of the handbrake" by the Smorgon Group. Whilst they sold around 40m shares recently, they're still left holding well over 200m shares and they seem to be gradually but steadily decreasing their RED exposure from where it peaked at a couple of years ago.

They appear to have done OK overall with their investment into Aust gold stocks (or at least the ones they've disclosed publicly that they have an interest in!!!). RED may not have performed as well as they'd hoped initially but it eventually produced a pretty good outcome and would have outperformed the Aussie gold indices over the past three years or so.

My own view is that if the Smorgon Group is still bullish on Aussie gold stocks, they may have formed a view that from now on, RED's share-price won't really outperform the gold sector indices. If that's anywhere near the mark, I'd guess their investment team is looking for "the next RED" to invest in and, hopefully, produce a better relative outcome than they'd get continuing to hold RED.

If the Smorgon Group has cooled in their view of gold stocks overall going forward, they may well be selling down all their exposures. The only difference could be that with their significant holding in RED, they're obliged to lodge Substantial Shareholder Notices from time to time.