The sheer quantity and nature of related party transactions (you can read all about it under note 28 to the annual report, for anybody interested) certainly does not lend itself to the view that the deals are being struck at arms-length. EWC is one part of an empire with many interconnected nodes. However, there is a question that continues to hang in my mind: Is SE not incentivized to ensure the success of EWC, with EWI (fully owned by SE) holding ~35% of the shares outstanding in EWC? How would its ongoing failure (reflected in an underwhelming share price) benefit the man?
The transparency and lack of care in the shareholder reports is really just atrocious, when compared with the level that other ASX-listed companies gladly offer.
EWC Price at posting:
8.7¢ Sentiment: None Disclosure: Held
