Forum Archive Index - November 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi John,

I'll also have a go at explaining why BDO has seen a burst in its share
price lately (I noticed they are up 25% today on turnover that is their
third most active day ever).

I'm not aware of any "news" that is in the market, but, as Steve mentioned,
Bronwen Evans (the CEO of BDO) has talked before about the company
positioning itself for potential takeovers/strategic alliances etc.  Perhaps
something is happening there.

But, I'm more inclined to think that some smart investors had woken up to
the fact that the company was significantly oversold when it was trading
around the 8c range.

After the dot.com fallout of April, we saw a swing in investor sentiment
from, to quote our good friend Mr Greenspan, "irrational exuberance" to
"irrational negativity".

Companies like BDO were simply caught in the downdraft.  It didn't matter if
the business model was workable, or even if there was a "killer app"
involved.  If you were a dot.com your share price was toast.

The shakeout *was* needed, but seeing BDO trade at a significant discount to
its cash asset backing was definitely due to negative investor feelings
against the entire net sector, as opposed to taking a good look at the
company itself.

So, with the upturn in BDO's share price we may be now seeing a return to
rational thoughts - neither overly exuberant, nor overly negative.

Or, as Steve says, maybe some speculators are buying in anticipation of some
good news.

Whatever the case, I'm sure that the investors that bought BDO at 25cents
pre-IPO have to be happy that the share price is getting closer to what they
paid for them.

On another note, I recommend checking out TheStreet.com for an excellent
series they've had running over the past two weeks about the state of play
in the Internet sector.  Makes for some interesting reading indeed.

Best Regards

Benjamin Dutton
(Disc. do not hold BDO)

----- Original Message -----
From: "Wedde, John" <john.wedde@cit.ac.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, November 06, 2000 1:34 PM
Subject: RE: [sharechat] BDO


> I know a lot of you don't rate this share at all but it has rocketed over
> 40% in the last week. Volumes have also been up considerably
> Last week I asked the group whether anybody knew of any explanation for
> this. I got no response. I therefore repeat my question. I'm tempted to
bail
> now and take a good profit but would really like to know if anything major
> is cooking here.
> Cheers,
> John
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