Forum Archive Index - January 2000

["Osbert Sun" <osbert.sun@xtra.co.nz>]

Ben, seeing the announcement today I'm glad that I'm no longer a shareholder
of NGL. What is NGL trying to do? To become a go-between agent in every
business sectors? I would have thought that a well-focused business
direction should be key to the success of a company. Well, what do I know
about running a business. NGL may well turn into a profitable business one
day. However, until I can see that happens, I'm happy to put my money
elsewhere in the market. Talking about value stocks, Revesco (RVS) has
always been one of my favorites. It's not a blue-chip stock, but it has much
to offer and a well-focued business direction in a fast growing business
sector.

Regards,
Osbert Sun

(Disclosure of interests: I hold RVS shares)

----- Original Message -----
From: "Ben Dutton" <bendutton@sharechat.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, January 27, 2000 3:47 PM
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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