Forum Archive Index - November 2000

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

Ben, interesting you said that BDO was trading at a discount to cash asset
backing. I think that at the time 12cps was talked about?. The problem here
is that it means nothing if investors have already decided that what theyre
going to spend it on is not going to produce returns 12 months out. Since
cash burn rate has become such a focus, current cash on hand is only
important to work out how long it will last until the proposed venture turns
a profit. Hence with BDO, investors decided that the proposed online
ventures future was worth less than current cash on hand. Im sure you
already know what I mean but thought I bring it up. The future perception of
that cash and what it could do should be reflected in the shareprice, of
course we (the market) are not right very much, and with ITC I'm starting to
think this is the case. (same for EFC at around 10-11c)

R
Warner


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