churn beneath the radar of most

NOMINEE TRADING SUMMARY PART 2:

(Nominee Entities who churn stock beneath the radar but who don't appear in the Top 30 of the register)

Following up on the churn numbers published the other day for the Top 30 holders, I have searched the register listings for the months of May, June, July and August looking for entities who are associated with significant buying and selling for any month but who don't retain a significant holding. These entities usually pass beneath the notice of anyone monitoring the Top 30 looking for any trends.

Interestingly, I came up with another bunch of Nominee companies (not private holders) for which the following statistics also make interesting reading.

And yes I am aware that some of the Nominee Holdings are broker controlled accounts that eventually disperse their holdings. But to where, and why do their clients need to have this facility, are the questions I would like to have satifactorily answered? And while the entities within the accounts may be simply looking to skim trading profits, they may also have other agendas as well.

Generally, Broker Nominee accounts are provided for sophisticated investors for ease of use and where anonymity might be considered an advantage. One of the conditions to qualify as a sophisticated or wholesale investor is to be able to demonstrate high net worth

Accordingly, I would generally associate the Nominee holdings with corporate clients rather than retail holders.


Trading Activity of Nominee Entities Outside The TOP 30

Month	ENTITY	Opening	OFF	ON	Balance
May	ACCBELL NOMINEES	9,026	452,054	485,446	42,418
June	ACCBELL NOMINEES	42,418	419,748	390,184	12,854
July	ACCBELL NOMINEES	?	0	0	?
Aug	ACCBELL NOMINEES	2,197	1,883,342	2,001,408	120,263
		TOTALS	2,755,144	2,877,038
May	ABN AMRO CLEARING	107,697	163,178	138,592	83,111
June	ABN AMRO CLEARING	141,298	184,139	150,538	107,697
July	ABN AMRO CLEARING	?	0	0	?
Aug	ABN AMRO CLEARING	107,697	163,178	138,592	83,111
		TOTALS	510,495	427,722
May	BAINPRO NOMINEES	10,474	1,133,654	1,143,004	19,824
June	BAINPRO NOMINEES	19,824	319,513	421,007	121,318
July	BAINPRO NOMINEES	?	0	0	?
Aug	BAINPRO NOMINEES	25,572	1,398,309	1,416,362	43,625
		TOTALS	2,851,476	2,980,373
May	BELLSET NOMINEES	0	234,883	338,883	104,000
June	BELLSET NOMINEES	104,000	377,773	273,773	0
July	BELLSET NOMINEES	?	0	0	?
Aug	BELLSET NOMINEES	0	1,672,703	1,709,203	36,500
		TOTALS	2,285,359	2,321,859
May	CMC MARKETS	19,000	148,227	129,232	5
June	CMC MARKETS	0	119,770	119,770	0
July	CMC MARKETS	?	0	0	?
Aug	CMC MARKETS	816	224,056	223,240	0
		TOTALS	492,053	472,242
May	COGENT NOMINEES	282,481	39,522	28,031	270,990
June	COGENT NOMINEES	270,990	90,463	100,464	280,991
July	COGENT NOMINEES	280,991	0	26,000	306,991
Aug	COGENT NOMINEES	306,991	82,853	8,944	233,082
		TOTALS	212,838	163,439
May	CS FOURTH NOMINEES	356,651	497,243	142,275	1,683
June	CS FOURTH NOMINEES	1,683	203,216	252,312	50,779
July	CS FOURTH NOMINEES	50,779	98,230	198,694	151,243
Aug	CS FOURTH NOMINEES	151,243	237,337	107,185	21,091
		TOTALS	1,036,026	700,466
May	ECAPITAL NOMINEES	?	0	0	?
June	ECAPITAL NOMINEES	0	280,439	280,439	0
July	ECAPITAL NOMINEES	?	0	0	?
Aug	ECAPITAL NOMINEES	11,740	792,127	824,259	43,872
		TOTALS	1,072,566	1,104,698
May	GOLDMAN SACHS NOMS	500	32,225	31,725	0
June	GOLDMAN SACHS NOMS	0	161,266	161,266	0
July	GOLDMAN SACHS NOMS	?	0	0	?
Aug	GOLDMAN SACHS NOMS	0	212,494	242,663	30,169
		TOTALS	405,985	435,654
May	IDAMENEO (NO 79) NOMS	2,629	119,336	116,707	0
June	IDAMENEO (NO 79) NOMS	0	107,029	108,429	1,400
July	IDAMENEO (NO 79) NOMS	?	0	0	?
Aug	IDAMENEO (NO 79) NOMS	2,845	908,472	955,215	49,588
		TOTALS	1,134,837	1,180,351
May	JERSEY INVESTMENTS	225,030	102,766	177,736	300,000
June	JERSEY INVESTMENTS	300,000	175,000	250,000	375,000
July	JERSEY INVESTMENTS	375,000	65,000	5,000	315,000
Aug	JERSEY INVESTMENTS	315,000	193,129	134,758	256,629
		TOTALS	535,895	567,494
May	KARDINIA NOMINEES	11500	78,988	102,488	35,000
June	KARDINIA NOMINEES	35,000	183,000	158,000	10,000
July	KARDINIA NOMINEES	?	0	0	?
Aug	KARDINIA NOMINEES	0	640,109	799,447	159,338
		TOTALS	902,097	1,059,935
May	MERRILL LYNCH	220,401	1,802,345	1,795,353	176,641
June	MERRILL LYNCH	213,409	1,010,330	987,998	380,090
July	MERRILL LYNCH	191,077	173,948	158,573	23,457
Aug	MERRILL LYNCH	175,702	1,242,023	1,164,173	117,852
		TOTALS	4,228,646	4,106,097
May	MLEQ NOMINEES	2,920	239,932	242,350	5,338
June	MLEQ NOMINEES	5,338	590,816	599,925	14,447
July	MLEQ NOMINEES	0	206,394	207,146	752
Aug	MLEQ NOMINEES	7,846	1,403,007	1,419,784	24,623
		TOTALS	2,440,149	2,469,205
May	MORGAN STANLEY	29,910	169,200	140,255	965
June	MORGAN STANLEY	965	193,044	212,501	20,422
July	MORGAN STANLEY	20,422	251,228	230,806	0
Aug	MORGAN STANLEY	0	366,347	415,307	48,960
		TOTALS	979,819	998,869
May	NEWECONOMY	92,323	58,521	32,617	66,419
June	NEWECONOMY	66,419	106,418	122,436	82,437
July	NEWECONOMY	82,437	50,654	19,610	51,393
Aug	NEWECONOMY	51,393	128,320	102,450	25,523
		TOTALS	343,913	277,113
May	PAN AUS NOMINEES	0	195,527	244,904	49,377
June	PAN AUS NOMINEES	49,377	269,498	255,184	35,063
July	PAN AUS NOMINEES	35,063	226,120	191,057	0
Aug	PAN AUS NOMINEES	0	270,008	430,018	160,010
		TOTALS	961,153	1,121,163
May	PATICOA NOMINEES	29,953	568,904	568,465	29,514
June	PATICOA NOMINEES	29,514	428,665	418,659	19,508
July	PATICOA NOMINEES	?	0	0	?
Aug	PATICOA NOMINEES	12,275	752,979	769,104	28,400
		TOTALS	1,750,548	1,756,228
May	PENSON AUSTRALIA	15,000	500,049	491,749	0
June	PENSON AUSTRALIA	6,700	226,947	222,747	0
July	PENSON AUSTRALIA	?	0	0	?
Aug	PENSON AUSTRALIA	0	900,375	1,123,900	223,525
		TOTALS	1,627,371	1,838,396
May	PEPLON NOMINEES	10,450	62,400	54,950	3,000
June	PEPLON NOMINEES	3,000	250,680	250,880	3,200
July	PEPLON NOMINEES	?	0	0	?
Aug	PEPLON NOMINEES	1,453	232,933	267,780	36,300
		TOTALS	546,013	573,610
May	SKEET NOMINEES	59,400	215,730	156,330	0
June	SKEET NOMINEES	0	66,825	66,825	0
July	SKEET NOMINEES	?	0	0	?
Aug	SKEET NOMINEES	0	1,146,572	1,251,572	105,000
		TOTALS	1,429,127	1,474,727
May	UBS NOMINEES	?	0	0	?
June	UBS NOMINEES	6,410	0	4,1271	47,681
July	UBS NOMINEES	152,318	13,307	161,290	300,301
Aug	UBS NOMINEES	88,701	508,386	433,141	13,456
		TOTALS	521,693	635,702
May	WARBONT NOMINEES	232,794	1,287,552	1,197,189	142,431
June	WARBONT NOMINEES	142,431	1,990,297	1,939,498	91,632
July	WARBONT NOMINEES	?	0	0	?
Aug	WARBONT NOMINEES	355,567	4,118,655	3,765,088	2,000
		TOTALS	7,396,504	6,901,775

COMMENTS

The following observations come to mind.

The Nominee Entities usually have insignificant net holdings on the register by the end of the month's trading.

The number of shares bought and sold each month can be quite substantial

Some Nominees have churned for a couple of months and then simply ceased trading for an entire month, before resuming again

Churn volumes generally exploded after the resource upgrade announcement in the middle of August

For the 4 months of trading, the total share movement for the register was 170.7 million shares. Combined, the trading of all Nominee Accounts accounted for 78.3% of share movements OFF the register and 78.5% of movements ONTO the register.

For the month of August where total share movements amounted to 88,641,600 shares (an astonishing figure really as it is more than the previous 3 months combined), 'faceless' Nominee entities accounted for 82.5% of the movements OFF the register, and 83.8% of the share movements ONTO the register. A small net accumulation in fact!

The Nominees in the above lists also aren't dumping shares, as they don't hold many to start with, but they are generally buying and selling in similar quantities. Maybe they are dumping via shorting both intra day and over longer periods, with the aim of buying back cheaper. If so it has been a winning strategy, but I suspect not for much longer as prices have reached levels that should attract copper focused investors.

Cheers
Nev

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