Forum Archive Index - April 2000

["Brett & Leeanne Phillips" <bret-lil@ihug.co.nz>]

Hi everyone,

Just a few thoughts regarding INL and why it looks like a star share over
the next few months.

It seems incredible that so many investors are letting this one slip by...
including myself.  Telecom's Theresa Gattung has indicated an intention to
increase their stakeholding to 10%. Ms Gattung commented on the initial
purchase as being a strategic position, which will allow Telecom to build a
closer relationship over time, while recognising the potential synergies
between the Media content and Internet industries.

"We recently bought 5.7 per cent in News Corp-controlled, INL, as we clearly
believe a key part of our new business, will be media content platforms."
she said.

There is now plenty of evidence to show a converging of the Internet,
Tele-Communications, and the Multi-Media industries world wide. This will in
effect bring together several major companies in New Zealand to combine
their specialist core activities and create added value opportunities both
inside and outside of NZ. Not sure? Well just look at the News Corp, SKY TV,
Telecom, EDS and APPT connections.

This type of transition is similar to that occurring at Telstra and at other
operators around the world. Telecom NZ requires content to continue to
satisfy its customer base. The total purchase cost for Telecom was
approximately $95 million, and there is no doubt a sound strategy being
formed by this purchase.

INL is showing similar signs to the Baycorp price break-out after it's share
split last year. While INL is presently being held back at the $4.10 mark by
profit takers exiting after initial gains from the split, these prices still
equate to approximately $12.30, pre-share split. Not a bad return when you
could buy less than 8 months ago for around the $7.30 mark. Those who hold
INL stock are sitting on valuable property with good growth prospects.

Take a look at the board of Directors to see the strength and entrepeneurs
this company has to offer the investor looking for capital gains and
dividends. For instance Craig Heatley who is a major stake holder in INL and
is Chairman of Sky Network and also E-Ventures(a company which I understand
will provide users with loans, investment advice and insurance products on
line).

Along with fellow Sky Networks director Tom Mockridge, and Director of News
Corp, Commonwealth Bank and Ansett Australia, Kenneth Cowley. This looks
like a powerful crew, with a very capable CEO in Mr Robson. Of course the
driving force behind INL will be it's major stakeholder News Corp and just
take a look at the dollar levels News Corp has been trading at on the ASX in
recent months. No wonder Theresa Gattung wants to join the 'party' and I
suggest she would not have paid a premium for no reason.

As a scenerio case and point look at Singapore Press Holdings which is
listing it's internet subsidiary, Asia One. SPH has just announced
impressive financial results with a 44% increase in net profit. Asia One was
first launched in 1995 with content mainly from SPH's newspapers. Asia One,
operates a website offering news, financial services, loans, insurance
products, entertainment and shopping on line. This has been expanded to
include information and services from other sources, including joint-venture
partners... Sound familiar!..

I understand that CEO Mike Robson will announce their new website portal in
May,  and if overseas scenario's are anything to go by the price is sure to
rocket. At the moment INL seems to be good value considering Telecom paid an
average of $4.25 per share. It's just a matter of time before the weaker
sellers leave the market and INL becomes an expensive stock once again.
Another stand in the market may not be to far away if the Telecom target is
10% and I suggest a share price of $6.00 is not out of the question.

This share looks a hot prospect for the future and I suggest readers take a
look for themselves while the opportunity is still available.

Cheers Brett



----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please us the form at
http://www.sharechat.co.nz/forum.html.