Forum Archive Index - May 2000

[Nigel McCarter <n.mccarter@clear.net.nz>]

I agree
16 companies  ... it will take more than 18 months.
If BCH is falling it is because it is overvalued, but before anyone panics,
have a look at the volumes.
How many shares on issue?
How many shares have been traded in the last two days?
All of which might mean ziltch, but ....


At 02:22 PM 5/11/00 +1200, you wrote:
>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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Nigel McCarter
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