Forum Archive Index - January 2000

["David Reid" <aspex@ix.net.nz>]

Great discussion but some are getting confused.

I have NO IT stocks in my Tech portfolio.

They are generally the new generation of "Knowledge Based" companies.

--Companies that design and franchise out their products.

--Companies that have a product like a international credit checking system.

--Companies that have unique hardware designs with locked in software.

--Companies that have linked in with larger international players using niche design concepts

Yes they can and will fall but while some are not making profits, most if not all are in positive cash flow situations. They are earning money and maybe spending on further development.

Internet companies are the problem because the space they have to fit into will not accommodate them all.

The secret is to have access to information that identifies these special situations. They do not always phase in with your own "gut feeling" but when they do take off they go ballistic.

 

The so-called tech companies on the NZSE are not very attractive because most have no uniqueness about their product or format and they will fight over a tiny market. If they are good enough they will go straight for London or Nasdaq. Keystone Software in the UK is a NZ originated company that has found its niche in UK. It floated in 1998 possibly 1997,and went as low as 11P in 1999 and is now fluctuating in a range of 90/110P ,having made its first profit in November and extending quickly into the legal practice field. I have no declared interest in Keystone but I do have access to a mass of information about them.

D