cudeco(cdu) limited - representations, page-2

Hi CDU'ers,


The following is the text of a letter that I have posted to ASIC today concerning the trading of CuDeco(CDU) Limited Securities on the ASX.

"1st October, 2013,

Mr. Greg Medcraft,
Chairman,Australian Securities and Investments Commission,
Level 24, 120 Collins Street,
Melbourne. Vic. 3001

Your ref. CCC11\0338 – CuDeco(CDU) Limited – Trading.

Dear Mr. Medcraft,

I refer to my earlier representations to you, the latest was on the 2nd September, 2013, concerning the trading of CuDeco(CDU) Limited Securities on the Australian Securities Exchange(ASX).

I wish to draw your attention to the continuing high gross short Sales (shorting/churning/capping, etc.) activity for CuDeco(CDU) Limited Securities trading for the month of September, 2013.

This follows up the trading of CDU Securities for the months of May, 2013, June, 2013, July, 2013 and August,2013, which I have represented to you.

You can see that gross short sales(shorting/churning/capping, etc.) continues non-stop to effect the share price of CDU as a consequence of these apparent illegal trading practices.

It would seem that an Entity/Entities are intent on keeping the CDU share price capped as low as possible using gross short sales methods of trading.Only an Audit can find out who the Entity is and whether it is fair trading.

Therefore, I have provided, hereunder, the details of the daily trading figures for CuDeco(CDU) Limited securities for September, 2013.

This will enable you to see the consistency of the patterns being used at the present time by those shorting/churning/capping, etc., CDU Securities on the Australian Securities Exchange(ASX) with gross short sales.


September, No. of shares No. of shares % of shares CDU Price

2013. Traded in CDU. Shorted in CDU . Shorted in CDU. Movement.

------------- --------------------- ---------------------- ------------------ ---------------------

2nd. 1,264,506 233,057 18% Up 9.5c.

3rd. 916,230 105,124 11% “ 10c.

4th. 1,568,109 754,208 22% “ 7.5c.

5th. 1,685,967 223,733 13% Down 1c.

6th. 1,047,331 207,826 20% “ 5.5c.



9th. 827,484 307,493 37% Up 5.5c.

10th. 1,232,853 205,734 16% “ 4.5c.

11th. 3,032,549 699,738 23% “ 23c.

12th. 3,825,567 635,566 17% “ 11c.

13th. 1,736,109 314,346 18% Down 2c.



16th. 1,491,492 558,826 37% “ 8c.

17th. 1,620,741 298,351 18% Up 11c.

18th. 1,942,139 420,433 `21% “ 8c.

19th. 1,069,899 118,931 12% “ 8c.

20th. 2,966,875 442,367 15% Down 1c.



23rd. 1,335,986 169,531 12% “ 6c.

24th. 2,089,190 316,126 15% “ 13c.

25th. 937,696 127,384 13% Up 4c.

26th. 711,031 55,645 8% “ 3c.

27th. 624,272 102,384 16% “ 4c.



30th. 445,408 52,783 12% Down 5c.


This has resulted in an aggregate of 1,540,000 CDU Securities being traded daily in September, 2013, along with an average daily 18 % of this stock being gross short sales. The overall price movements of CDU for the month of
September, 2013, was a gain of 67.5c and a share price of $2.14. A net loss in the CDU share price of $1.62 since the 1st May, 2013. This undoubtedly is partially attributed due to the gross short sales(shorting/churning/capping,,etc.) undertaken over the 5 months.

Aggregate trading of CDU for the five months May, 2013, June, 2013,July, 2013 , August, 2013, and September, 2013, revealed the following:

May. 5,297,849 CDU shares traded and 1,399,012 (27%) were gross short sales.
June. 13,162,693 CDU shares traded and 3,073,694 (23%) were gross short sales.
July. 24,180,916 CDU shares traded and 5,340,454 (22%) were gross short sales.
Aug. 49,666,146 CDU shares traded and 7,603,732 (15%) were gross short sales.
Sept. 32,421,434 CDU shares traded and 5,944,586 (18%) were gross short sales.

So the aggregate monthly trading of CDU shares for the five months of May, 2013, June, 2013, July, 2013, August, 2013 and September, 2013,was 25,000,000 of which 4,670,000 were gross short sales. This represents aggregate gross short sales of approx. 20% each day of trading of CDU Securities over the period of 5 months 1st May, 2013, to the 30th September, 2013.

The CDU share price has dropped from $3.76 on the 1st May, 2013, to $2.14 on the 30th September, 2013 . A loss of $1.62, despite the fact that the Chairman, CuDeco(CDU) Limited, has reported publicly on 27 occasions since the 1st May, 2013, that there has been no material change or any other change to the company. All Company Announcements have been positive for the imminent mining at Rocklands.

The situation which CuDeco Limited faces, is not fair trading in the true sense. Shorting is an anathema. It only serves the purpose of enriching a small number of the financial insider elite. In this case, CuDeco and many of the ordinary shareholders are financially disadvantaged due to the type of trading being undertaken by a few on a daily basis to destabilize the CDU share price.

The aggregate gross short sales for May, 2013, June, 2013, and July, 2013,was 24%. The aggregate figure for August, 2013, and September, 2013, was 16.5%. This has resulted in an up-trend coming back to the CDU share price as a result of lesser gross short sales. That is, more normal type trading although capping is still prevalent, especially at the opening and close of trading for the day.

A forensic examination into CuDeco could be a test case for the whole of the ASX to determine where malfeasance is taking place, and thus enable changes for the system to operate with integrity and fairness, and provide transparency, for all shareholders.

The High Court of Australia has unanimously ruled that the buying and selling of shares on the Australian Securities Exchange(ASX) to create or maintain a share price is an offence of market manipulation.

The Australian Securities and Investments Commission(ASIC), as Regulator, needs to take on the necessary responsibility to remedy the apparent trading irregularities represented for attention.

Yours sincerely,

Maxw",


Referred for the information of CDU shareholders concerned.

cheers,

Max