email to andy rigg, page-79

Perhaps we need to remind ourselves that during the blackout period, also known as the period between the close of financial books and the release of the entity's half-year and full-year results, no Director trading should take place. I am battling to really view any ELK trading policy - might be their somewhere. This may have caused the Board to engage in a flurry of on market buying in June. This suggest to me that as always, I believe if any update was to be made, they are covered now.

However, Company directors are obliged to keep the market formally informed of company directions and updates. ELK has never portrayed footprints of insider knowledge; evidence of this is what happened in late October 2007.

We just need to believe in the business plan and IMHO, I find BRRs mostly unnecessary and normally led by rampers within the company itself.

I don't think we can complain too much - the global macros are hurting many companies atm and again, they really have put their money where their mouth is. More than 80% of the stocks rose within 3 to 12 months of significant buying by directors and the opposite held true when directors were selling. The directors know the company best. If they are buying the shares they must think the company is undervalued...and so do we. One of the best barometers of whether a company's share price is too high or too low can be the reaction of directors to their own companies.

Directors are just like everyone else in that they have spare cash to invest, or may need cash for renovations, school fees and so on. So there are certainly many everyday reasons for directors buying or selling. But more often than not, buying or selling activity by directors can be significant and profitable.

Anything could happen.