Hi JBear I wasn’t going to re-engage on this thread given some...

Hi JBear

I wasn’t going to re-engage on this thread given some of the rubbish that has been said. However you have a genuine question so I will do my best to answer it. The answer will be in two parts.

First - from a trading perspective; I highlighted the other day and in my first post around March 2016. The short position is still very high relative to stock outstanding. Data demonstrates that this short has been covering since around mid-December, when many were going away on holiday. I do not trust the short data on a day to day basis, having to adjust it to make sense, but over longer time frames I have managed to get a quite accurate picture of the position.

They are covering and in addition they have always appeared to be well informed, therefore positive announcements relating to company statements and releases may be closer than we all think. In addition, as stated in my first posting early last year analysis of the share price movements with the adjusted short interest gave a good correlation with the share price. Putting these two points together gives me confidence in my view that the share price is moving higher and the shorts still have a significant position to cover. Fundamental buying by a wider group of institutions, not just the shorting hedge funds, is likely to materialise as the mile stones are achieved.

Second – although I follow trading closely I am a fundamental investor and have valued the projects from a business perspective in detail. I am very comfortable with the data I use and the outputs I get all indicating value significantly higher than the current share price of 40 cents at the time of posting.

Other comments

Unlike some commentators I do not believe this company is being cynically set up to be taken out. There have been numerous times this could have happened including when SE increased his holding recently at 15 cents, why not bid for the lot?

In addition to suggest the photos of the boat are a publicity stunt uses flimsy logic. This boat shows SE is developing a fully integrated model in the Philippines which will spark interest in other regions for a similar model. The significance of this will be understood more clearly by a business person than an investor. If EWC had the cash this boat could have easily been owned by EWC but it doesn’t (and wont) until the issues of land access etc. get sorted.

In conclusion I have no view of share prices on a day to day basis but over a short to long term feel quite confident that prices have to move higher as the company delivers on it stated objectives.