Forum Archive Index - January 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Michael, Phil and Dylan:

Interesting and intelligent comments. I want to find out some more info on
EOL before getting too excited though like, what their current client base
is and revenues etc.

Best Regards

Benjamin Dutton

(Disclosure - do not hold shares in Newcall, but am a customer of their
telco services).


----- Original Message -----
From: Michael Sprott <MSPROTT@clear.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, January 27, 2000 4:35 PM
Subject: RE: [sharechat] Newcall (NGL)


> I agree with the thoughts of Dylan and Phil. I must admit that I have had
no
> interest in Newcall as an investment up until this announcement. The
> businesses that they were primarily in were long distance toll and ISP
> services were both commoditising leading to an inevitable margin squeeze.
I
> could not see how this company was going to break into profitability.
>
> Newcall is already a reseller of toll services mainly to businesses.
> Reselling energy obviously fits perfectly with it's business model of low
> capital investment. They already have channels to market and billing
systems
> set up so by adding these type of services to their mix they will add to
> their earnings.
>
> I may even buy some shares on the basis of this news.
>
> > -----Original Message-----
> > From: Ben Dutton [SMTP:bendutton@sharechat.co.nz]
> > Sent: Thursday, January 27, 2000 3:48 PM
> > To: sharechat@sharechat.co.nz
> > Subject: [sharechat] Newcall (NGL)
> >
> > I was surprised to see this announcement to the NZSE this morning from
> > Newcall, a "telecommunications" company --
> >
> > "Newcall has announced that it has acquired 75% of Auckland based
> > embryonic
> > electricity reseller, Energy Options Limited (EOL).
> > The purchase price of $600,000 has been met by the issue of 1,050,000
> > ordinary shares in Newcall at 57cps, with all shares subject to a
> > restraint
> > of trade.
> > The total issued capital of the company following the issue of these
> > shares
> > will be 120,877,685 ordinary shares.
> > Newcall have retained the management of EOL, both of whom were
previously
> > with Power NZ, to ensure industry knowledge and expertise is protected".
> >
> >
> > These statements are taken from their press release --
> >
> > "EOL has customers in the small and medium size business market, and
> > that's
> > exactly where NEWCALL is focused. We can offer additional telephony
> > services
> > to EOL customers and our customers have the benefit of reduced
electricity
> > prices.
> >
> > "In fact we were so impressed with EOL that we changed to buying our
> > electricity from them early in our discussions, resulting in significant
> > savings in our energy bill," (MD Norman) Nicholls said.
> >
> > Nicholls said, "At one level we are able to share call centres and
billing
> > systems while at another we have the exciting prospect through our
> > recently
> > acquired subsidiary, Iprolink, to provide Internet billing and other
> > e-commerce marketing to a broader client base."
> >
> > At a strategic level the move exploits the international trend towards
> > utility convergence, Nicholls said. The purchase mean we have an
> > opportunity
> > to explore the provision of utility services at a very low cost."
> > --
> >
> >
> > Now, I have to admit that this came as a great surprise to me.
Newcall's
> > purchase of an ISP, yes, that fits within my idea of a
telecommunications
> > company, but an electricity reseller??  Even though this purchase isn't
> > very
> > significant to their balance sheet, it does distort my view of the
> > company.
> >
> > What do other members of the forum think about this move?  I'd be
> > interested
> > in finding out other people's opinions...
> >
> > Benjamin Dutton
> >
> >
> >
> >
>
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