Ok sstop - maybe offloading wasn't the best choice of words...

Ok sstop - maybe offloading wasn't the best choice of words (especially since it's such a low volume stock) but Merchant has been re-weighting their holding of late. My main point to crosso was that I think there's no hurry to buy atm. Here's why:

We know Merchant bought their initial stake of 250m shares for $200k (see ASX Ann 6/8/12).

Then there was the 1:20 share consolidation where the SP converted from .001 to .02 around 16/9/14. So Merchant was reduced to 12.5m shares at average of .016 (which was still well below any long term SAT holder).

Then on 16/9/14 Merchant was issued 10m shares for $50k via Conversion of Notes. Plus they picked up another 412,000 shares for accrued interest.

Then Merchant participated in the SPP and picked up another 3m shares at .005 for $15k.

What was interesting was that the SPP was originally meant to issue the SPP shares on 2/10/14 (This was laid out on the ASX announcement 17/9/14). However, the SPP shares weren't issued until 9/10/14.

I participated in the SPP and was hoping to get my shares issued before any good new announcements. Unfortunately that wasn't the case, as on 7/10/14 the company announced the Jumbo or Large Flake Graphite project.

Based on their recent Sub Holder Notice, Merchant stated they sold shares from October 7 onwards. Whilst they wouldn't have had their shares from the SPP issued by October 7, they would have already received their allocation via the Notes. So Merchant were able to offload some of their holdings into the good news on October 7.

In doing all of the above, I'd say Merchant have bought their average down from .016 to around .01 in the past month or so. I appreciate they still have approximately a $230,000 investment in SAT (200k+50k+15K - $30k (from the 4.4m they sold recently). As it stands they too are down on their investment. They need a sustained increase in the SP to realise their investment. But given their average cost (other than the Directors) they are best placed to recoup their investment should good news come.

Given that most long term SAT holders would be 'lucky' to have an average cost of .02 after the consolidation then they are well behind the likes of Merchant.

For now I say whether Merchant seek to continue re-balancing their holding or to realise what they can, they are operating at average costs well below what most longer term SAT holders are able to do.

This has been a low volume stock for years and interest remains low for now or as the optimists might say under the radar. So people will need to be patient or some exceptional news will have to bring new investors to the fore.

Also the directors intend to receive another 14m shares at .005 in lieu of $70k of director fees incurred since Jan 1 at the next GM. The higher the SP in the interim the greedier they may look.

imho that's why I think crosso has time on his/her side - as there's very.little buying interest and Merchant I think will want to reduce their holdings when they can.