This is a follow up to my letter to the ASX ,- and to the Minister responsible for Financial affairs Wayne Swan,- In the interests of all disafected PLA shareholders .
The increase in volume and decline in the share price of PLA leading up to the delayed announcment on the 13th Oct was due to "those in the know" dumping their shares as they got wind of the pending sacking of Redpath, the mining contractor . What galls shareholders is the appalling lack of action shown by the ASX to this breach of the ASX rules. They accept as gospel the curt,flippant "NO" from PLA in response to the ASX query on the 5th Oct ,-relating to volume and price . It was a blatant untruth. PLA is treating the ASX compliance section with contempt .
Management knew damm well that the sharemarket was reflecting the pending sacking, and dispute with Redpath . Why did Lewins and management not call for a suspension of trading ,late september ,untill this matter was resolved .
NO ! Eight days after the ASX query and continued selling of the PLA securities- They announce on the 13th october the sacking of Redpath ,and the shares continued to plummet to a low of 50.5 cents .
Yet only 24 hours later and without the usual-10 minute pre open, they announce the appointment of a new contractor ,and the shares rebound to close at 57cents .
Management were totally delinqent in their duties to keep the market informed and to protect the interest of all shareholders ,-not just the ones "in the know ". The ASX should hold an enquiry to determine who was selling PLA shares from the 29th sept to the 5th Oct(70 cents plus- down to 61.5cents ) The many shareholders who sold their shares near the bottom of the market would be seathing,- yet the ASX doesnt give a hoot at the deplorable, deceptive corporate behavior of management . At the very least Lewins should front a panel of enquiry by the ASX. Many faithful shareholders have lost heavily as a result of this disgraceful episode ,and I repeat ,The ASX doesnt give a hoot ! The ASX should immediately reinstate the Broker Identification Numbers ,so as individual brokers can detemine who is selling any given stock .
Currently,-"Insider trading is alive and well on the Australian Stock Exchange under the Blinkered eyes of the ASX".
Akin to a Bangkok "Boiler Room "- or the tables at Crown Casino .
Lets hope Wayne Swan will now take action to protect small shareholders from being shafted ,-I doubt it .
ps : These comments will be forwarded to the Financial press
PLA Price at posting:
55.9¢ Sentiment: None Disclosure: Not Held
