On the 25th of may EML responded to an ASX price drop query. EML...

On the 25th of may EML responded to an ASX price drop query. EML stated they received a letter from the regulators Thursday evening which stated they were mindful to take action that could materially restrict the ability for PFS to conduct business as usual. EML received legal advice from their lawyers by Friday evening (local time) and went into a trading halt on the Saturday. The issue is whether they should have gone into the trading halt on the Friday morning. There was a day of trading where people bought a stake where they could argue they wouldn’t have if they had known about the letter. That’s how I understand the issue. It doesn’t depend on whether insider trading has taken place. As I have already posted I think that if the claim has merit then the implications for EML valuation is minimal. Personally I wouldn’t be surprised if EML agreed to settle out of court for a couple of million. I am not a lawyer and there may be good grounds for a defence but either way I think any current weakness based on this issue represents a buying opportunity.