Ann: Appendix 3Y - G Rezos, page-43

Most of the AFR articles on small caps get something fundamental wrong.

In regards to the NASDAQ listing, this is a mixed thing with me. The ASX is fostering a lot of tech via shells right now because its a safer nursery for small fish compared to the NASDAQ shark tank, which, in the main, has onerous membership conditions that force small companies to stretch in unnatural ways to fit and leaves them vulnerable. Many want a public listing, because the Venture Capital route cedes too much ownership away too early as well. The perception of the ASX as a safer pond may change as some of these pirahna companies in the USA move some focus here, since their stock in trade is perception re-setting and its easier to do it in small markets. Is our little but growing fish ready to swim with the sharks?

The biggest issue is if you become a short target in the US boards, there is all manner of ammunition used to deconstruct your story and make it look very bad, even when its good. Just ask anybody who is in Tesla right now or closer to home Prana what being on the wrong side of big shorters in the USA can do. That said, if you are on the right side of the line with solid interest you can get much more positive attention as well, but it swings both ways, the negative attention is also amplified. ASX often shows benign indifference to a lot of news but seems to be quite easily manipulated lately. Sheer fact that when you have say less than 100 transactions in a day its very easy to shift things around with a little manipulation money compared to a market that has thousands and requires more work to push around. The sophisticated manipulators are just starting to arrive here. I dont think we've seen the worst of it yet here.

The popular finance media is the preserve of institutional think here right now, ASX200 etc, they dont drif t much into small caps much. In the USA, that's not the case with saturation finance coverage on cable etc, they get down to small caps often. And the opinions of someone like Kramer never seem solely based on solid analysis. When you start to see highly target negative articles in the AFR on small caps and mentions on popular finance media, then you'll know the really big manipulators have fully arrived here.

Until then, I hold that despite its obvious problems, the ASX may still be the best location for AJX for the next while.