A flurry of cheesy coincidences

So popular was the cheese and milk powder maker among some intuitive stock pickers that it experienced it busiest trading day since

its listing in 2004. Its shares surged 17c to $2.20.

These investments made on Monday proved rather canny yesterday morning when Warrnambool responded to a price query from the Australian Securities Exchange noting how it had received an unsolicited takeover proposal.

"The company is aware of no evidence that this approach is connected to the recent trading in the company's securities," Warrnambool said.

"The company is strongly of the view that the trades at small volume in relatively illiquid shares means that there could be many other explanations than that the proposal ceased to be confidential."

Just a coincidence then.

Warrnambool shares surged another 20 per cent after the announcement.

"The company notes the increased investor interest is likely to result from the improved operating environment for the company," the company added.

HEED THE FLAGS

The Australian Securities and Investments Commission has shown no let-up in its corporate crime-fighting efforts with the publication of a 23-page colour brochure with pictures of people at the beach.

In a move sure to strike fear into the financial market bad guys, ASIC's head detective, Tony D'Aloisio launched a free brochure yesterday that he said would "put retail investors on the path to investing more wisely".

However, in an effort to ensure beach-going investors will not get confused about Investing between the flags , Inspector D stressed the title should not be taken literally.

"It's just a metaphor, but when you go swimming at the beach you will reduce the risk of drowning if you swim between the flags. Similarly, when you invest, you will reduce the risk of losing your money if you adopt the investing behaviours identified in this guide, which has been developed over a long period of time."

Despite ASIC warning people about the ins and outs of swimming at the beach for some time, Inspector D at least seems to have taken the concept of investing between flags to a new level. He also warned that it was not good to "put all your eggs in one basket".

Things have come a way since the middle of the year, when the concept of investing between flags was still in its infancy. At a conference in June Inspector D's former deputy Jeremy Cooper only talked about swimming and not investing between the flags. "If you're between the flags you're in a safer, patrolled section of the beach," Cooper said.

In his speech Cooper also showed his team of ASIC detectives had been working hard on writing some gags. Such as: "A director decided to award a prize of $100 for the best idea of saving the company money during the credit crunch. It was won by a young executive who suggested reducing the prizemoney to $20."

BEWARE OF GLOSS

The glossy brochure and Investing between the flags website promoted by ASIC seems to offer one conflicting piece of advice. "Step back and take your time to do your homework - don't rely on glossy brochures, websites, or the assurances of a smooth-talking salesperson."

A PERSONAL NOTE

Westpac countered the continued bad publicity about its 45 basis point rise for home loan rates with a pre-emptive email to customers.

The bank's presentation on Monday did not get a positive write-up in the press, so the bank sent a note to customers early yesterday morning. "As you have your home loan with us, I realise that this has a direct impact on you. I'd therefore like to say that the decision to raise the rate wasn't taken lightly," said Westpac's outgoing retail and business banking boss, Peter Hanlon.

"You have my commitment that if and when funding conditions change we will be just as responsive in reviewing our rates." He did not repeat his line from Monday's presentation: "We're not the Jetstar of banking."

ELVIS AND LATEX

Beware of Hulk Hogans and men in lederhosen if you venture down Castlereagh Street this morning. A London interdealer broker, ICAP, will be holding a fancy dress party in all its global offices today, including Sydney, to raise money for charity. The ICAP equity desk will be dressed as Star Wars characters, treasury will be celebrating Oktoberfest, Elvis will be on the money market desk and IT will be in Mexican dress. There will also be a bobsled team and staff in WFF Smackdown and fruit salad attire. ICAP says it has raised $95 million from its charity day since its inception in 1993.

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