Forum Archive Index - November 2000

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

That's very interesting Adam.

If the NZSE made NZ companies disclose this information, I think the result
could be a return in investor confidence in the whole Internet/tech sector -
well, more confidence in companies that deserve it, anyway :-)

Best Regards

Ben

----- Original Message -----
From: "Adam Rands" <adamlist@iguana.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, November 06, 2000 7:24 PM
Subject: Re: Re: [sharechat] BDO


> 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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