Ann: Change in substantial holding, page-60

With the lack of growth in the larger space money started to flow through into small caps. As a result some companies with little to show fundamentally had big pushes in share price and mkt cap. EML was one of those companies. At a 400M mkt cap and little to no cash flow some small cap fund managers perceive EML as a risk. Whats more interesting is even after the HY update they still are not convinced. I also note the company is still being shorted. I think the business is currently transitioning from a conceptual stock to one that actually proves itself fundamentally. Obviously its going to take more than one good half to make that transition and prove the business model. When it does a lot of those risk adverse small cap mangers will jump on board and the stock will significantly re-rate. EML is a quality business just going to take some time to reduce the perceived risk of owning the stock.