Forum Archive Index - March 2000

[Derek Watt <dkw@paradise.net.nz>]

DFM might have chosen to sell AQL because several sharechat contributers
did, maybe there turning to Sharechat for advice!

But any company owning or intending to own shares and then posting,
releasing or linking to  information which may effect the share price
should be required to disclose their interest in the share with the
post/release/link or whatever (and not just on the same website).
Otherwise they stand accused of market manipulation for their own monetary
gain. This is real wild-west stuff and bad news if its true.

Derek


At 09:23 PM 3/3/00 NZDT, you wrote:
>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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-----------------------------------
Derek Watt
http://members.tripod.com/DKWatt/
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