Forum Archive Index - February 2000

[Chris Darby <darby@ak.planet.gen.nz>]

Jane,

Yes, I echo your thoughts on Savoy's attempt to extract funds from 
Auckland City Council.  Let's also recall that it was a very long and 
calculated decision of the ACC to pull the plug on Britomart.  I believe 
that both Simpson-Grierson and Mark Cooper were advising the ACC, neither 
less than excellent in the area of the RMA and property law.  No, you are 
definitely not 'the dog in the manger'(wrong sex) on this one.  More a 
case for reality over fiction though others may see it as a case of 
hydatids.

Of course if proceedings are ever filed, the ACC may counter with its' 
own suit for breach of contract or similar.  Then we have SVY looking 
down a loaded barrel rather than pointing a half cocked one.  At that 
stage their insurers may decide that the hunt is too hard and pull SVY 
off.  SVY will not be asked, they will be told.

Let's remember too that SVY do not have a bright history.  Parapine, a 
small timber merchant in Upper Hutt, was their first foray into the NZ 
market.  They proceeded to dispose of those assets at considerable loss 
and changed the name to Counterpoint Equities (CEL).  Then came the Dairy 
Brands acquisition just as dairy farm prices were peaking and astute 
farmers were selling and heading to Victoria.  Then we saw the Pacific 
Capital Assets (Britomart Developer) takeover. Another name change, let's 
try Savoy Equities.  Realising that Asians are lactose intolerant Dairy 
Brands was dumped and another loss booked.  Onward with the Britomart 
until the 'no entry' 'no exit' sign went up, a splash of shareholders 
funds into hotels and tourism at the Hyatt and finally a splash of IT 
with Safety Net.

Not exactly a history one would want to invest in but add a bit of rumour 
and IT ingredient and you have the perfect trading stock.  But until 
there is more rumour and IT spice SVY will probably flounder around the 
5-7 cent level.   

If SVY continues its' tangential investment thread of past, the market 
will punish it severely.  Safety Net, however small, is literally just 
what SVY is in need of.       

Chris.    

      

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