Forum Archive Index - June 2000

["Warner Lamb" <cloud9@i4free.co.nz>]

Chris,I hope you read the report first.The generalisation that companies are
lumped into the "tech share" basket is becoming an annoying chiche.Most
punters believe EFC is in total only a portal,e-com play.Product Sourcing
International is an established product sourcing business which has been
operating and profitable long before B2B became a buzzword..but essentially
what they have been doing all along.They have an International presence with
offices throughout Asia and beyond.They will have the most weight and impact
on EFC.If the aquisition goes ahead (AGM 14/6/00) EFC will be profitable in
their first year.A low 6.6pe reducing to 5.1 in 2001....and excellent eps
growth...and NO debt.EFC also have a profitable 50/50 joint venture with FLC
which has been retained to date.
I agree with your advice on recommendations and I only took a sml holding
due to PSI.I do not consider this large part of the company a technology.If
the aquisition falls through,there will be losses and share price
correction..this is the risk...If not DFM are giving a whole range of
figures based on PSI for 9 years and Imagic for 6 years,not speculation.If
you can find better figures to base your research upon..I would be most
interested to see it.
Warner
all Im saying is,If it goes ahead,There will be more to EFC than meets the
eye,and I dont think it should be brushed off as a "tech" play.


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