analysis of top 20 changes & conclusions, page-16

Hi LT

I still think that much of the big selling pressure must be from some larger holders forcing the price down or the GEM shares being passed on. There have been so many sustained sells of large parcels of 1mil or more just continually battering the market. As soon as it looks like there is a bit of a rally, along comes another several parcels of a million or so to be sold. This does not look like small holders. There has to be a reason for this, and the only one I can make sense of is that the price is being pushed down so that the new investors can get a better deal. Otherwise, why sell at such a loss in largish quantities? However, many smaller holders (maybe many who bought on more recent surges) will have reached their limits and cut their losses as a result of this and got out so you are probably correct in this respect.

One would think that most of the quitters have been shaken out by now but it's hard to guess how low it may go because as you say, who is going to buy them. I wouldn't think that many new small investors would be diving in to this stock. The big guys have just been playing with it IMO. When they turn their strategy around (as they likely will at some point), things should get better though I wouldn't expect it in a hurry. There are quite a few of examples of this kind of activity in the ASX in volatile stocks. It will be interesting to see if this downward spiral stops after the new shares are issued to the latest private investor. It is likely that there will be around 50mil issued at about .008 instead of the expected around 33mil at about .012, plus options worth another 10% or so issued more or less free.

KBO.