not a time for pla yet, page-7

Hi Kevin

I am tempted to go back to all of BoA's announcement and reconstruct their trading back to 29 April 2011. I am beginning to think they are technically long in the stock and are simply averaging down the entry price (through sell/buy trading).

Two/three strategies at play here . BoA is a large organisation with lots of products/funds and clients to look after. Hence the separate business unit holdings which collectively make up the hole.

Having reread a few of their notices again last night it dawned on me that the borrow/lend strategy in not necessarily a short strategy. Given that the total number of shares captured in these notices has never matched the ASIC numbers.

We have to consider that it is the Mathews Capital Sabre Fund that is actually running the show here... ...which is partly what drove the two notices this week.

From their website:

'The Mathews Capital Sabre Fund is an Australian domiciled unlisted trust launched in April 2002. The Fund remains the firm’s flagship investment vehicle. The Sabre Fund has been closed to external investors since November 2008.

The Sabre Fund is managed by the firm’s founder and Managing Director, Philip Mathews.

The Sabre Fund adopts a long/short concentrated investment strategy and utilizes a moderate to high level of gearing. The Fund’s key thematics include energy and resources, base metals and gold, agri industries and selected industrials.

The Sabre Fund invests both in Australia as well as the internationally.
As at 30 June 2011, the Sabre has produced annualised returns in excess of 23% since inception (net of all fees)'.

So along with the likes of Northcape Capital Pty Limited and Acorn Capital - we're in good company however the strategies employed might hurt along the way.

Philip Mathews is a shrewd and very clever operator. PLA is in play here.

Gus