Comments on AFR latest article, page-7

Well I bought heaps today at under the closing price, although tomorrow who knows what the SP will be.

I can see why there is selling - we have had two directors selling recently including one more sale announced today, with the CEO selling recently (although a drop in the ocean when you look at who she is married to), we have had unhappiness about transparency in the accounts from some analysts and market players, and rumours that are quite possibly true about ASIC investigating the accounts, and a very nice article in the fin over the weekend with a nice graphic interactive. Also retail is perceived to be struggling with competition from the internet and new players in the market.

However nothing really new stands out to me from the article, apart from some more mechanical details, and a name from Slater and Gordon. I think Gerry will be very hesitant to show all of his cards, as I suspect he feels he has a stronger negotiating position with some opacity. Also just because ASIC may be investigating the accounts, it doesn't mean they will find fault in any significant way. They will easily find something to argue about if they wish to.

So I hope the panic sellers have some time to reflect on their actions overnight. Assuming there is no inside news I am not aware of, I suspect the selling is overdone - down 15% from the results, which while taken slightly negatively, were relatively benign.