I may like to offer a different theory to our 3-4 years of...

I may like to offer a different theory to our 3-4 years of decline. I first bought into EMC before Christmas in 2015 at below RTO price of 20c, bought more on its way up, bought at 82c, felt like a genius when it hit $1 but didn't sell any, bought on the way down, participated in the 37c and 44c SPP, and bought more today. Believed in the story and had not sold a single share. Now drowning in this water stock.

@Relax1 (our FLC guru) had wrote this fantastic piece on 24/4/2020 and laid out the developmental history of our share structure (a must read). BTW, I hope @relax1, you are ok, we kinda miss you.

https://hotcopper.com.au/posts/44243379/single

If we now examine the situation that leads up to the merger of EMC and RWL, EMC had a CR at 64c in July 2016, merger took place in July 2017 (announcement in May 2017). In a normal business dealing, how long does it take from conceptualization to crystallization of a merger of this nature? I would think it could take more than a year. The share price of EMC if I could put it crudely, was pumped gradually and purposefully for achieving the best advantage for the EMC holder.

On the other hand, RWL, still lost making, needed to get a valuation as high as they could get to get a better deal for their owner(s). The subsequent impairment of $64m in 2018 accounts may indicate how much the intangibles was actually worth.

So the merger took place at a valuation that was priced at the highest possible, when it was blue sky and highest expectation of smooth execution but still loss making.

As Relax1 had pointed out, after the merger, ICV, GE Venture, Energy Technology Venture sold into the market due to de-emphasizing EBR.

Eytan exited, Peter Marks sold after resignation from directorship, both I believe are not shareholders now.

Since I last checked, ESOP Management & Trust is no longer on the register; John W King has been selling; whereas Jagen and Torres have held their holding tight. ACN 075 312 980 and Beacon Unit Trust were long gone.

On the nominees side, if we do suspect any shenanigan, it could be just hiding in these big bank names.

It is a bit like investing in any startups, IPO with a blue sky potential, price rises into an unrealistic expectation, crashed down during the many phases of trials and CRs, and finally, if they are successful, the bottom-line profitability and sustainability of profit determine the price.

This Friday is Chinese New Year, probably a lull in news from China for the next 2 weeks. Good to know IC had broken ground, and hopefully, we get some good news after the CNY around or just after our full year reporting.