cudeco shorting activity, page-235

Buddy134,

Two dircetors have been forced ro resign from the ASX for shorting manipulative practice of their American hedge fund Manikay Partners.

In all probability, it would be unlikely that the Australian share market has not suffered manipulative trading practices as well. A Senate inquiry/ Royal Commission is the means to establish what has transpired.

When the Australian Stock Exchange has to dispense with of two of its Directors, it does nothing for the credence of the Exchange or its management.

The Senate Inquiry has already investigated the incompetence of the Australian Securities and Investment Commission. That inquiry will be now broadened.

If you wish to lodge a complaint why you think ASIC has not been doing its job properly, you have still time. Submissions close mid October. Max will be able to give you the exact date.

I believe that the Senate will broaden its inquiry to not only cover shorting but the role of brokers, journalists and stock market forums.

At this point we still do not know where the shares in M@gG have been parked. If they have been parked in nominee accounts, this would be worth looking into by the Senate Inquiry as would the shorting which accompanied the sell down of the CuDeco shares and who ultimately will finish up with them.

If you came to the conclusion that CuDeco share were overvalued, you would sell them . You would not lend them for shorting.

Those who lend their shares for shorting get them back. They intend to hold for the long term recognizing the worth of the company . They could not care less what damage is done to the share price by shorting .

Wayne has told us that hedge funds were targeting the company by short selling and tried to get CuDeco removed from the short selling but was unsuccessful.

I am looking to the 2013 Annual Report to see what share movement has occurred in the shareholdings of the major shareholders .

It should not be lost sight of that following the release of the first JORC in 2010 and the severe shorting that happened then that the major shareholders took the opportunity of the depressed price to actually increase their holdings.