arresting the confusion with nominees, page-2

bmloho

Thank you! - A post of clarity at long last!

You mentioned among other things:

Some clients request that the broker nominee account be used particularly, in TO situations, and in situations where they have not completed the allocation of the stock.. So, what you are looking to see is a build up of Broker Nominees not Fund Manager Nominees. The likely hood of T+3 (those not settling) being sent to the register in a nominee is rare. The notion that over 3 million shares at Commsec has failed to settle is rubbish.

Unfortunately, most of the valuable information you have provided appears to be lost on forum members as there has not been a response to what you have provided.

To my mind it defies belief that in the wash up to the company's long awaited and much anticipated resource upgrade announcement, what we have seen is:

No celebrations whatsoever after a company defining announcement alluding to 1 million tonne of in-ground copper, which importantly has been given the seal of approval by external consultants. And instead, we have had massive confusion and endless 'discrediting' of the stock, coupled with heartfelt admissions of devastating real losses and massive paper losses.

Absolutely no back slapping by supporters of the stock

Not a champagne cork to be seen anywhere

A trail of devasted mums and dads littered across the country

Virtually no positive reports on the company's accomplishment, either from the media, brokers or forum scribes.

And yet,

We have the following glaring anomaly that flies in the face of all of the above. I refer to the latest register developments that I highlighted last Friday on the other thread.

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In essence, 4 Nominee holdings have entered the Top 30 of the company register to the tune of a combined 4.92 million shares - representing 3.6% of the company. If all of the buying was by related entities, that number of shares isn't far short of the ASX 5% disclosure requirement.

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The strong buying by entities that has shown up in such size, flies in the face of all that we have witnessed. Who would be so interested in buying a supposedly dud stock as aggressively as it has been bought over just a few days of frenzied trading?

The situation defies all logic!

While almost everyone seems to be obsessing about the company's resource upgrade announcement in public spats on forums such as this one, at least someone has been busy accumulating stock as fast as they can.

In fact the rapid accumulation brings to mind a surprising announcement by Oz Minerals when they announced 19% of Sandfire resources virtually overnight.

The Oz Minerals announcement for those who have forgotten is repeated below. (the really important bit as far as I am concerned is in blue)

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"OZ Minerals is pleased to announce that it has acquired approximately 25.8m shares representing approximately 19% of Australian listed Sandfire Resources NL. This is considered a strategic investment which provides exposure to Sandfire's high quality Doolgunna project located in Western Australia.

The acquisition of the stake was completed today with the majority purchased from a small number of high net worth / institutional investors and the balance from on-market purchases.

The total consideration for the purchase was approximately A$100 million.

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The situation that is evolving right in front of us, provides fertile ground for further investigation. There is definitlely something that doesn't stack up here if one is to assume that those constantly discrediting the stock are correct. Maybe they aren't correct at all, and that those behind the strong buying actually rate the company highly?

I intend to follow this matter up tomorrow to see if any further changes to the register structure are in evidence!

Cheers
Nev

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