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From: | "Warner Lamb" <cloud9@i4free.co.nz> |
Date: | Mon, 6 Nov 2000 17:54:32 +1300 |
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 ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors http://www.netbroker.co.nz/ Trade on Credit, Low Brokerage. Join now. ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.
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