SP, page-53

Hi everyone,

I have noticed with nearly all stocks the holders awc s32 grr MGx mrg thc and many more are in the view that they are an excellent buying opportunity and market hasn’t realised their full potential of the company. However their share price tells another story. Take mgx for instance it’s coming back from approximately $1.20/share that’s like a 40% correction. This is happening despite the fact company is posting excellent results. This is the case with lot of companies. I have been in this game since 2002 seen lots of booms and busts. My humble view is never fall in love with any stock no matter what. If any stock is going up buy it. If it’s going down sell. My sell trigger for Mgx was when the director offloaded $300k when it was $1.20. Ever since then it has been in a downward spiral. I see the asx the same way as a casino. The winners are definitely not the players! You have to ask your self why are these guys go public in the first place. Also large shareholders motives for backing them in the first place. I believe it’s not they have faith in the notion that it’s profitable it’s more for supply guarantees. Take grr and mgx for instance. Very similar companies both with no debt and sheet loads of cash in the bank. Who are their biggest buyers? Their main share holders hehehe. If I was a substantial holder it would be in my best interest to keep the sp low as possible. Think about this in an objective way. Check out the P/E ratios. I hope I have been helpful. No disrespect meant for opposing views. Happy gambling. Thank you