Forum Archive Index - May 2000

["Adam Rands" <adam@iguana.co.nz>]

TMN were floated at $1.00 by Hartley Poynton in Oct.
It was HPL best float of '99
First day went to $1.90
My mistake was to bail out at $2 and $3.40

But the real question has to be asked as to why TMN did not list on the NZ
market?
Why have they not even bothered to setup a dual listing?
A lot of kiwis hold this stock.

I have only heard good words about Chris Johns and one has to wonder has NZ
lost another talented Kiwi to Australia/Rest of the world.

On another matter....I was reading a magazine liftout from the Sydney
Morning Herald a few days ago.. The lead story was "30 people, under 30 who
are making a name for themselves in the IT/Tech area"

I was thinking how a similar article in NZ would struggle to even find 10
people (of the same caliber). Sure, these people may exist but the are
certainly not locally based or under 30.

My List

Bruce Simpson, Aardvark fame  - certainly not under 30 but important
contributor to industry
Ihug Boys - The Internet Group - not sure of their age but suspect over 30
Shane Cole  - Paradise Net - sold out for 30mil to Saturn.. thats a good
thing
ummm......

Maybe i am being to harsh or am to disconnected to know better....however
what is clear if NZ is going to move away from being a primary producer,
encourage companies like TMN to stay NZ based and benefit from "tech" then
the government really has to get behind the KBE... Tax breaks, incentives
etc etc.. Cant see our labour govt having that foresight...

comments?
flames?



-----Original Message-----
From: Chris <cd@ak.planet.gen.nz>
To: sharechat <sharechat@sharechat.co.nz>
Date: Wednesday, May 10, 2000 11:07 AM
Subject: Re: [sharechat] IT Investment Forum Report - Telemedia


>Ben,
>
>As I recall TMN listed on the ASX in late Oct '99 at about $1.90.  It
>quickly gained support and passed through $4 by year end.  It did  hit
>$10 briefly as you suggest but traded at over $8 on just 5 days.  Volume
>then averaged about 350,000.  That's solid for TMN.  Recent trading,
>yesterday and today, has been extremely light at 50,000 in the $3.50-70
>range. Currently $3.50 and support at $3.40.
>
>I would not be surprised if we were not near the bottom but like others
>am weary of the overall market.  $3.20-30 and I will accumulate for sure.
>
>Great to see discussion of TMN and your impression of Chris Jones.  I
>have heard similar sentiment from others who have met him.
>
>Regards,
>
>Chris
>
>cd@pl.net
>
>
>
>>Hi Neil,
>>
>>Yup - I agree with what you say - of course one has to determine if a
share
>>is appropriately priced before making the buy decision.  But what's an
>>"appropriate" price?
>>
>>Looking at Telemedia, it's currently trading at $3.70.  That's down from
its
>>all time high of $10 on March 30 - and nearing it's one year low of $3.50.
>>So is TMN appropriately priced?  Is it cheap?  Is it expensive?
>>Unfortunately one cannot apply Buffetology to technology stocks (As the
Sage
>>of Omaha freely admits himself).  Mr Buffett certainly would never touch
>>TMN - it has a P/E ratio of 284.62.  But others have, betting on the fact
>>that it will be a winning company in the future.  They've even driven the
>>share price up to $10.
>>
>>Thus, by investing in TMN at its current price, one is betting that the
>>company will continue to grow and prosper at a rapid pace.  I freely admit
>>that this is a bet - but Chris Jones convinced me that he was the man for
>>the job.
>>
>>Of course, there may be problems that I'm unaware of - Lincoln Watson made
>>some good comments yesterday about the possibility of TMN not being able
to
>>deliver at its current growth rate.  This may be true, I don't know.
>>
>>For better or for worse (and we could discuss this for weeks :) tech
stocks
>>in today's market do not follow traditional valuation techniques.
>>
>>Best Regards,
>>
>>Benjamin Dutton
>
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