Max,
you are referring to me and you are incorrect I am a holder and have been for 4 years plus. I also posted the link to noiprocs post so people could read and judge for themselves.
So the question now is, you have just defended noiprocs saying that he proposed 30 mt at 2% and that it was reasonable based on what the company said in 2009.
Now as I said he overstated the JORC by 61% on his "conservative estimate" (his words) and his low ball number was 29% over the JORC.
The answer to what happened on 18 Aug 2010 is right there, a JORC that was way under expectations and you need to accept where those expectations started.
Now on to his "STING" Did a broker or financier ring or contact you and suggest that you and others take out margin loans to buy Cudeco shares ?
- The sharks that trawl the waters of the ASX would have known that retail holders were over exposed and perhaps overly optimistic about the JORC and as a consequence extremely vulnerable.
So who forced the retail holders to take out margin loans and who fueled expectations ?
And his words again
- Cudeco is a stock that has proven to be a shorters paradise. Fact!
Max, can you tell me the short percentage through Aug 2010. According to ASIC records it was steady all month under 1%. That is a very low short figure.
And I did read on one of his posts (that I can not find at the moment) that he says that on 18 Aug a lot of holders sold out early and bought back late in the day. Explains the Comsec conspiracy. And do you not think sophisticated investors would sell as soon as bad news was known (and they would more likely than a retailer to have a tight stop loss) and buy back in when they saw value. Look at most bad news slumps on the market, usually over reaction and a bit of a bounce not long after.
Max there was no Sting, shorters did not fuel the crash , it was purely because expectations were not met by a significant amount when the JORC was released.
I am not trying to put noiprocs down, I have not met him but as I said the reason for the share price crash is in his post, it is just that he is looking for conspiracy when he has clearly stated the reason. Significantly lower JORC than market was looking for, over leveraged buyers and not sure if he mentioned it but every CDU stop loss would have been hit that day. Even an initial 10% drop probably would have hit a stack of stop losses which would have then accelerated the process.
I am no expert but from a dispassionate observation of 18 August events , it is very clear what happened and the sequence, sell off on open due to JORC not meeting expectations, stop losses hit and price kept going down until margin calls were hit, fueled a bit by a couple of brokers that cottoned on that the JORC was going to be disappointing .
By the way, there is a way to report someone or a company to ASIC but you have to name names and have backup, I made a report once and was contacted for more information and was then told I would not hear anymore as it is all confidential.
es they
So even if they investigated, they would not tell you and you would never know what happened unless you read in the paper someone was prosecuted. If you or noiprocs have definitive proof of wrongdoing, a pay for win law firm would be more than happy to take on a class action. Buddy has made reference to Slater & Gordon a few times so I guess they were not interested.
