Forum Archive Index - May 2000

[Chris <cd@ak.planet.gen.nz>]

The much discussed savaging of the Baycorp share price has been 
attributed to the arrival of RMG by a number of posts.

As I recall RMG consists of the consolidation of 6 businesses in NZ and 
10 in AU.  Can someone who has affirmed the RMG/Watson deal so strongly, 
explain what those 16 businesses were doing so badly to not impact the 
business or share prices of either BCH or DAD(Data Advantage) prior to 
the announcement.

Of course BCH has drifted south to 810-820 and there is a possible 
re-weighting occuring by those who have made 200% gains in the last 2 
years.  On the other hand DAD has remained relatively strong and is in 
fact up today at AU$4.30.  In 14 days it has traded around the 425 mark 
with an intraday spike to 490 on one day.
  
I would suggest that BCH's 50% interest in Alliance/DAD is standing up 
strong because the market in AU does not perceive RMG to be a threat at 
all.  Maybe the RMG PR is stuck in traffic and business editors do not 
see it as being worthy of column cms.  

There may be some who are more concerned about the BCH move into Asia, 
ie., an investment risk they don't want to wear or be part of.  Remember 
too BCH's first foray into AU about 4 years ago.  Millions were lost and 
a quick retreat to home shores made.

I do not deny the abilities of Watson and associates but think it will 
take 12-18 months to bed down 16 companies, 16 cultures and 16 management 
styles to be competitive.  

Chris     

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