Forum Archive Index - April 2000

[James Chong <jka_chong@yahoo.co.nz>]

I have looked at the Merrill's report on ITC serveral
times. I wonder how you get a 9c NTA. That report was
made before ITC spent 1 Million dollars to increase
its stake in EXO net and increase investment in
Virtual Spectator. They are now sitting with around 8
Million cash and plus the 3m from Ernest & Young,
total of around 11m cash. This increases its NTA, so
the actual NTA now is probably 0.18-0.19.
Also, Terebyte was purchased at a premium of 1.4 times
revenue, not 2. If Terebyte is valued at 2 times
revenue, from Table 8 of the Merrill's report, ITC
will be valued at 4.5 times Price/ NTA, a significant
decrease from 5.2 times when the share price is at
$0.70.This consequently makes ITC more attractively
priced. Compare to similar US companies- 55 times
revenue.
Regarding to the 4% B2B market share. I don't think it
is important in valuating ITC as it is a global
investment venture. 
About NASDAQ listing. It will only be a matter of
time, if not, then it's investments would, such as
Virual Spectator and Terebyte.
At the closing price of ITC today at $0.49. It's
Price/ NTA is around 2.7, which is a great premium to
its assets. I cannot find any stocks simliar to ITC
that has a lower Price/ NTA given its potential.
Comparing to other NZ tech stocks of the same type,
ITC is attractively priced. Comparing to the US where
Price/NTA is over 20 times and 100 times.( ITC is now
only 2.7 times). Even AQL is more than that, sitting
with just cash. ITC has said that EXO net is expected
to grow 5 fold in 2 years. And now with more funding
for Terebyte and ITC is going to be profitable this
year. I look forward to future announcements.



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