Forum Archive Index - May 2000

["Paul Frost" <frostpt@ihug.co.nz>]

I was somewhat surprised that South Eastern Utilities has taken a 20%
interest in the small software development company Vianet.The investment
represents about 1% of SEU's total assets and is far removed from their
previous investments in electricity companies.My first reaction was why
bother with such an insignificant investment.However, on reading the article
in todays Christchurch Press it appears the investment has the potential to
produce substantial returns for SEU.

SEU gives the appearance of being a relatively conservative company and not
the type to jump onto the latest bandwagon.With over $65,000,000 cash in the
bank and no debt it doesn't really have to.Based on their previous record
with investments in the electricity sector, you would have to consider the
SEU directors as being very astute.

SEU has an asset backing (nearly all cash) of about $1.08 a share.In the
current environment, SEU
could make for a relatively safe investment IMHO.

Announcements regarding further investments by SEU are due to be made in the
coming months.

A link to the Vianet article http://www.press.co.nz/2000/19/000513b01.htm


Disclosure : I own SEU shares


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