Forum Archive Index - November 2000

[Adam Rands <adamlist@iguana.co.nz>]

Interesting thread guys

The ASX has started to publish information (reserves and burn rate) on tech 
companies which they believe are in financial schtuck.

If memory serves me right the ASX changed their listing rules about 18 
months back to ensure they could get this disclosure from recently floated 
tech companies

Given the NZSE listing rules are a shambles I would not expect the NZSE has 
the same rights. It maybe just another benefit  we can look forward to when 
the exchanges merge :)


Adam




At 05:03 PM 6/11/2000, you wrote:
>Hi Warner,
>
>You are absolutely right, and my statement was rather simplistic - I should
>have been more clear.
>
>My understanding is that BDO's burn rate is quite low - when I spoke to Ms
>Evans one month ago she said that they take a "very conservative" approach
>to running the company.  However, I do not have exact figures.
>
>As you say, knowing the burn rate of these companies is paramount because
>that is what the market now prices into its valuations - perhaps if BDO was
>to release their monthly burn rate investors would have a clearer idea of
>the current cash position of the company.
>
>It definitely would be an interesting piece of information to have!
>
>Best Regards
>
>Benjamin Dutton
>
>
>
>----- Original Message -----
>From: "Warner Lamb" <cloud9@i4free.co.nz>
>To: <sharechat@sharechat.co.nz>
>Sent: Monday, November 06, 2000 5:54 PM
>Subject: Re: Re: [sharechat] BDO
>
>
> > 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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