05-26-2012, 10:39 AM
I make the following observations as an EWC long and partner in arms with IOC (I hope)...
RC bought a large chunk of EWC off EWI (Elliott) after propositioning EWC board for a 20% stake (declined by BOD and agreed at 14% or thereabouts in the end). Possibly a similar advance was made to IOC board and refused outright, hence RC acquiring everything on market?
He started at 50c on EWC and drove it up, all with relatively good news along the way (barring delayed FID for Gulf LNG - and gradually dried up the float). He hit the 20% limit for an ASX company whereby a takeoffer must be made, and stopped buying. Almost simultaneously, a major Australian paper ran articles accusing EWC of fraud and the share price started a massive correction from its peak, all on the back of relatively good, or at least benign news. I believe he peeved off a few players along the way (as they lost $) - and they sought revenge - and he was powerless to stop them. He is now completely underwater on every EWC share he has ever bought and a lot of smaller investors have been badly burnt following on his coat tails. I remain well and truly in the black with my 3c shares, but my holding is diluted and I am annoyed at RC, EWC and the crooks that all contributed to it. Clearly, the long term looks good, but that is the life story of EWC - and some people have literally died waiting.
RC is not that smart - he just has more money than me. I "found" EWC a decade before he did and have shown a lot more patience than he has had to with EWC.
I watch and read the hype about RC here and shake my head. Be careful.
RC bought a large chunk of EWC off EWI (Elliott) after propositioning EWC board for a 20% stake (declined by BOD and agreed at 14% or thereabouts in the end). Possibly a similar advance was made to IOC board and refused outright, hence RC acquiring everything on market?
He started at 50c on EWC and drove it up, all with relatively good news along the way (barring delayed FID for Gulf LNG - and gradually dried up the float). He hit the 20% limit for an ASX company whereby a takeoffer must be made, and stopped buying. Almost simultaneously, a major Australian paper ran articles accusing EWC of fraud and the share price started a massive correction from its peak, all on the back of relatively good, or at least benign news. I believe he peeved off a few players along the way (as they lost $) - and they sought revenge - and he was powerless to stop them. He is now completely underwater on every EWC share he has ever bought and a lot of smaller investors have been badly burnt following on his coat tails. I remain well and truly in the black with my 3c shares, but my holding is diluted and I am annoyed at RC, EWC and the crooks that all contributed to it. Clearly, the long term looks good, but that is the life story of EWC - and some people have literally died waiting.
RC is not that smart - he just has more money than me. I "found" EWC a decade before he did and have shown a lot more patience than he has had to with EWC.
I watch and read the hype about RC here and shake my head. Be careful.