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    Withdrawal works at AdultShop

    ANYONE feeling sorry for chief executive Malcolm Day, in light of the recent sharemarket pasting of his company, should think twice before enclosing a cheque in any get well cards.

    Day can always ask his long-standing business partner Rod Smith for a helping hand, given that Smith should be flush with moolah in light of private dealings carried out when AdultShop was riding high and its internet pornography operations were gushing cash. Despite Smith and Day severing their joint ownership of earlier this year, they have retained interests together in a property development company that sits behind a whopping apartment development near Kings Park called Miami Gold.

    ASIC records show that a series of charges over Miami Gold's assets, including a share in the Versace complex on the Gold Coast, were lifted or assigned around June 20 and that Suncorp Metway registered a charge over Miami Gold's assets to the value of a cool $30 million.

    What's more, Smith lodged a substantial shareholder notice earlier this month saying his private company, Dor Nominees, ceased to be a substantial shareholder of on July 15 after selling 11.4 million shares and receiving a total of $3.7 million.

    This was an average price for Dor of 32.5¢ a share, which compares rather favourably with AdultShop's closing price yesterday of 8.5¢.

    His final holding after the sale was not disclosed but the notice indicates that he has gone below the 15 million shares threshold for making substantial shareholder notices.

    According to notices lodged in February when Smith and Day divided their holdings Dor, and Day's private company, Hollywood Marketing, each had 23.2 million shares.

    Amid all the outcry in recent weeks about AdultShop's previously unknown problems in its pornography operations, Day has constantly stressed that he has not sold one share in the listed outfit.

    By our reckoning, Day's stake of 23 million shares is now worth about half of what Smith received for part of his own nest egg.

    As any good trader will tell you, timing is everything.

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