Forum Archive Index - July 2000

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

Interesting and diverse views on Advantage but little facts!
For those who dont seems to understand "Tech stocks" and again lump them all
into one thoughtless basket. here are some basic figures for ADV.
Shares on Issue: 61,359,801 (26/7)
Full year profit: 4.87m (to 31/3/00)( does not include sale of building as
reported by Herald)
EPS = 7.93c............@ $2.50 = PE 31.5.
Now I would suggest that a company which is growing earnings at 100% + per
year and I am well aware this will slow in the short-med term as they have
invested heavily in future growth, is not a high multiple in this space (BCH
has a PE double that). There are so many inititives coming out of this co.
its hard to keep up. Their B2B and B2 GOV work is placing less focus on B2C
making them a full service company..and remember they are a services
company, not a retailer. They are developing services for the wireless
market, and you only have to look at the new EFTPOS terminals ICE to see the
synergies with data for mobile phones, ICE terminals are internet enabled
and I would say they should capture even more of the market than 65%. There
are many small businesses that would enjoy the features ICE will provide
even if they just use the email function. There is a large colour screen
version to come ICE 6000.(not unlike a Kiosk- another hot space)
Now, do you really think a PE of 31 is high for a company with this sort of
growth ?
I have been following ADV for a few months now and I believe it will be a
HOT stock again. It will definitely be in my portfolio by NOV.
I would suggest this co. has ex med term share price prospects.
My brother works for the largest developer in the Sth Is and he is in such
demand its not funny. He said that there is a lot of interest from Britian
because work can be done effectively "overnight". He has more work than is
physically possible to do and has turned down lots. I would say ADV would be
experiencing the same demand (just look at the new recruits)
ADV is now 525 strong.
I see AXA have just increased holding to over 8%.
Some say there is no support @ $2.50 but it seems to bounce from there.
Maybe $2.50 will be my entry....watching
This is a huge growth industry and its not about to stop. IMO
Warner
(no ADV.. soon)




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