Forum Archive Index - March 2000

["David Thompson" <dvd_tpn@hotmail.com>]

A scan of my research files has unearthed this excerpt from a Business 
Herald article which dealt with the unsavoury share price manipulation and 
dealing before Spectrum's new direction was announced. DFM is mentioned.

"Thus, Spectrum was a shell with no purpose, or at least no purpose 
articulated by Momentum to the market. The following Monday, Tuesday and 
Wednesday, Spectrum's shares dropped sharply in heavy trading. On Thursday, 
December 23, Momentum announced Spectrum would invest in e-businesses and 
had placed 17 million shares at 11c. The placement price was 90 per cent of 
the average of the preceding five days trading. But the price had fallen 
sharply because the market thought Spectrum was a shell and because Momentum 
sold 4,133,745 of its Spectrum shares, 11 per cent of its stake. DF Mainland 
did the lion's share of trading. So, come December 23 some highly favoured 
investors got into Spectrum at 11c a share. Last night, five weeks later, 
Spectrum's shares closed at 38c. That series of events is really ugly and 
warrants an explanation from Momentum and its advisers. The Business 
Herald's question to the New Zealand Stock Exchange's Market Surveillance 
Panel is: what do you think? "

We all now know that DFM is a major shareholder in AQL and has been actively 
pushing it (once upon a time) in its Blue Horseshoe column but now, for 
reasons only known to them, has decided to try and steer investors away from 
the shares. Maybe the Spectrum case provides the answer.

A check of my Companies Office records also indicate that Stuart Cairns, 
Executive Chairman of DFM is also Chairman of Frontier Petroleum, and 
Chairman of NZ Petroleum Co Ltd. Now those companies sound very familiar! 
Now if we were all to do some research this weekend, I just wonder what 
other DFM "connections" we can come up with? I suggest that Ritchie can 
co-ordinate all the concerns of everyone and prepare a submission to the 
Securities Commission (I will get their email address for you).

There may be a perfectly legitimate answer to the concerns of investors as 
regards DFM's role in everything especially the AQL debacle and the way the 
share price has plunged so low through this avalanche of cheap shares 
flooding onto the market. But as someone on Sharechat correctly pointed out 
this evening, why has the company not explained itself? I do not believe for 
one minute that no one from DFM (or connected with the company) read the 
comments on Sharechat. So DFM, we are looking for answers!!!!

David Thompson
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