all the fault of czd

Hi All

Latest from our largest shareholder, not safe hands unless CZD can convince him otherwise!!

http://www.merchantgroup.com.au/news/merchant-opportunities-fund-newsletter-november-2012.html

Evil: Calzada which is the largest holding in the fund essentially undid all the good work from InHouse and a couple of other investments, falling from $0.051 at the beginning of the month to $0.045 at the 30th. This fall is exacerbated on extremely light volume resulting in an 11.76% movement in the carrying value of the asset. This translates to a reduction in value of some $400,000 within the fund. Am I concerned about this, NO, but it would be nice to get a positive break one of these days!

Calzada has had positive news in their own right and the management group continue to purchase shares on market which is typically a good sign. However, the killer here is volume traded on the ASX. The volume is so low that any movement to buy or sell as little as $1,000 of shares in the company creates a headache for us remaining shareholders. This is reflective of the trials and tribulations of investing in the small cap sector at this time.

cheers