asic investigation - what impact on hdr?

Hi Chinguetti

I too would like to see the manipulators exposed! I posted after Banda results and pre placement that the decline was overdone and looked suspicious. Then the placement was announced and it sure looked an obvious play for an "insider" like MBL to have sold it down in the 80's (despite the Banda success) thus driving down the placement price and subsequent share price, and putting their warrants into a safe and profitable position.

Unfortunately, as Ted Ellyard said in an email I received (in response to my query about the sliding share price) it could also be interpreted that the "market" (read traders and other majors like MBL) were disappointed at the amount of gas in Banda - and that's why it was sold down. I think it is going to be difficult therefore for ASIC to get them on this one. They have most probably acted unethically with regard to the Warrants, but it will be hard to prove they acted unlawfully. I must admit that I was surprised at the time of the placement that MBL was involved given their warrant positions - perhaps this was an error of judgement on HDR's part?? There was an obvious conflict of interest.

This issue will make today's AGM even more interesting. Unfortunately I won't be able to attend but I will be at the Sydney presentation on 3 December - with plenty of questions.

I hope that this issue does not affect confidence in HDR. Anyone have a feeling as to what short-term effect may be on the share price? Are other institutions less likely to want to be involved thus limiting the upside response to the anticipated reserve announcement? Or will the shackles come off and the share price rise??

Cheers

H