Forum Archive Index - January 2000

["Matthew Van Veen" <mattvanveen@hotmail.com>]

Ben
Thanks for starting the talk on Newcall. Invested a small amount last 
November for my children as a long term keep for them and to earn for them 
more than the 3% they were getting in their banks. I must admit their 
announcement also threw me a bit however the reply comments are quite 
positive and maybe a good move by Newcall. Newcall have ex Telecom heads 
near their top so experience in their business is good. With ever changing 
ways of doing business probably a strategic move on their behalf and a sign 
of things to come. The potential for this Company to grow far exceeds 
current share price.


>From: "Ben Dutton" <bendutton@sharechat.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] Newcall (NGL)
>Date: Thu, 27 Jan 2000 17:06:32 +1300
>
>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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