Hi Dr Pinot,I think you are very close to the mark re the...

Hi Dr Pinot,

I think you are very close to the mark re the trading. A particular fund manager did indeed lose his job at one of the larger hedge funds who have been a staunch supporter of EWC.

My analysis suggests that this particular fund has since been lightening the load and may have offloaded up to 12m shares in Dec. It will not surprise me if they make a complete exit!

My analysis also suggests that another hedge fund who are a very large holder have been under severe stress having seen their funds under management drop from over A$2b to approximately A$300m this year. I will bet my bottom dollar that these guys have been aggressive traders via sophisticated logarithmic trading programs throughout this year.

The very presence of this style of investor is a legacy of what I would call the poor management in placing stock in 2007/8. Instead of focusing on building a quality register of patient, blue chip institutional investors a quick and easy fee driven, scatter gun approach to the flighty hedge funds was made. It was "money for jam".

Some would argue that without the hedge funds tipping in the $150m then the company probably would not have survived the GFC that followed and there is an element of truth to that argument.

However on the flip side, these are the investors that have caused the havoc with the share price and now the blue chip long only funds will not go near it.

Bring on the selling as this Pihrana has very sharp teeth!!

Regards

Pihrana