Ann: Becoming a substantial holder from WAM , page-7

Hey Blastoff,

Instos/FM's will never be as good as the likes of you or I! LOL!!

The FMs are pretty well constrained on what new coys they can start buying and when. Every insto has their own investments guidelines and due-diligence checks, especially for new coys.

You are right that there were many signs that NEA was going to more than make it fairly early on. But the omni-present investment committees no longer accept an FM's 'gut feel' or 'good signs or hope' as acceptable investment criteria.

A fair amount of DD and evidence must be compiled and reported that at a minimum before any investment can take place:

1) the coy's business model not only demonstrably works, but is commercially positive;
2) its product's target markets have been assessed and demonstrated to have more than sufficient growth capacity to readily accept and absorb the company's products;
3) The coy has a realistic and achievable strategy and timeline and the resources for commercialisation to become a $???m coy
4) can survive a fairly rigorous "what-if' risk check list.
5) The proposed investment must have a realistic exist strategy.

There are, of course, many more investment criteria. But the point is, all instos have their own starting process which needs to be fairly methodical.

I'm guessing that PIM needed to actually see the 1QCF before starting but WAM only needed the Ann that cash was growing but was restricted to a set amount (sub 5%??) before further evidence/DD was available and then go on with the buying.

But it does give us guys a chance to get in ahead of these instos if we like the signs....even if some 'signs' are more obvious than others.

Our gain, Blastoff.