Forum Archive Index - February 2000

[Bill <billbray@xtra.co.nz>]

Alastair Bax wrote:
> 
> Probably a little late to add to this discussion, but I found a note I
> was looking for a few days ago when I read the comments. It is from
> James Cornell and his December Market Analysis newsletter:
> 
> 
> One commentator rated Aquaria 21 as "Sell of the week"owing to selling
> by Eric Watson. We had thought such "personality cult" investing had
> died with the 1980's boom when investors bought Brierley, Robert
> Jones, Judge, Chase and Equiticorp owing to their "excellent
> management". In actual fact, Watson's trust has sold to one of his
> companies - so his beneficial interest in Aquaria 21 remains
> unchanged. We advise avoiding Watson's companies as he has a record of
> making money for himself, not the public shareholders. The latest
> example of that is the transfer of his Advantage shares (and those of
> other major Advantage shareholders) to a private e-commerce company.
> That private company will seek other e-commerce opportunities and may
> eventually seek listing on the NASDAQ - maximising the value of
> Watson's Advantage shares - not the value of Advantage shares owned by
> public investors who are excluded from such private deals. Although
> completely legal, there is also the conflict of interest in that
> Advantage and the private company will both seek new e-commerce
> investments. With the same management running both companies, and
> evaluating those potential investments, investors can but wonder which
> company will pick up the more attractivedeals? We, of course, can not
> comment on such matters

My sentiments exactly Alastair

I worry about this man Watson.  He has looked after himself to date and
does not appear to have done much for fellow shareholders.

Disclosre: I have a heap of AQL which I have owned for six months and
frequently wish I had bailed out at anything over 19.0.  But like others
I guess I will wait and see.

Cheers 
Bill

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