Forum Archive Index - January 2000

["G Christie" <bayview@ktc.co.nz>]

McDonalds may have focussed on real estate once, but they're leasing more
now, just like the banks,etc. Regards
-----Original Message-----
From: Dylan James <dylan.james@nzef.org.nz>
To: 'sharechat@sharechat.co.nz' <sharechat@sharechat.co.nz>
Date: Friday, 28 January 2000 21:55
Subject: RE: [sharechat] Newcall (NGL)


>Osbert; a well focussed business diretion is exactly what they are looking
>at. Newcall don't own power generators or telephone lines. They are
>resellers. Their business strategy is customer service, billing
technologies
>and sales infrastructure. I imagine they intend to dominate this service
for
>SMEs. Currently they sell tolls, energy, data and mobile services. I would
>not be surprised to see them expand this further. A key issue for customers
>is multiple bills - it is a pain. Newcall are therefore achieving a very
>important advantage with the ability to combine bills and therefore save on
>customer service etc.
>This deal says to me that Newcall know their business. I have no doubt the
>future of these type of companies is very bright - not least because it is
>so amenable to new technology.
>It reminds me of Ray Kroc always denying that he was in the hamburger
>business - his real business was real estate.
>
>
>
>Dylan James
>
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>
>
>-----Original Message-----
>From: Osbert Sun [mailto:osbert.sun@xtra.co.nz]
>Sent: Thursday, 27 January 2000 17:55
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] Newcall (NGL)
>
>
>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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