Forum Archive Index - March 2000

[frank fernandez <frank.fernandez@xtra.co.nz>]

It was good to see the NZSE Market Surveillance Panel on the ball in
asking the Advantage Group to explain its sudden price surge this
week....to which of course ADV said that it didn't have a clue except
that the company, in the past two weeks, had been raising $10m through
overseas investors. 

Quite a plausible reason, I guess, to explain the renewed interest by
investors in the company.

But then Advantage also added that it is in the process of finalising
its interim results for the half year ended 31/12/99, and "expects to be
in a position to make a preliminary announcement in that regard by the
end of this week". 

Well, well, well, the picture is most certainly starting to become a bit
clearer now .....though it was obviously lost on the (presumably)
short-term traders who cashed up today - rather prematurely, I thought,
because of the following reasons.

Evan Christian, Chairman of Advantage has been quoted in this month's
issue of "Unlimited" as saying that ADV is expected to have equivalent
revenues this year to ASX tech darling 'Sausage'.  [Sausage last week
reported robust half-yearly revenue of A$17.3 million and an after-tax
profit of A$1.9 million]

Evan Christian was also quoted as saying that he believed ADV would be
valued at least five times as much if it was listed in Australia or the
US.....and this is why ADV aims to list on the ASX  by the end of June.
An ASX listing will naturally favour ADV investors in obtaining
preferential shares and is likely to be a huge 'carrot' for New Zealand
investors.

Maybe the broking pundits who predicted recently that ADV will zoom past
the $5 mark will be proven right over the next couple of days. It would
be extremely interesting to see the NZ market reaction to a good result.

Cheers,

Frank

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