Forum Archive Index - November 2000

[Gerry Tyler-Smith <g.tylersmith@ext.canterbury.ac.nz>]

Am I being naive in wondering about  the massive amount of very cheap
options granted to the directors during the year .. also the transfer of
180 000 Virtual Spectator shares, at cost, to Snider Capital .. also the
issuing of 3 million ordinary shares at a price of 25 cents (when they were
trading between 80 to 93 cents)  to Huia Trust (coy in which David Seton,
another director had an interest) ... All this siphoning off of shares into
private companies, as well as milking the option cow for all she's worth,
makes me very uneasy about the motive of these boys .. . or am I
misunderstadning what is, in fact, the right and proper way of starting up
a company?  it's possible, too, that I am misreading what is, to me, rather
complicated finanical information in their annual report


 >Hi Warner,
>Sorry I've taken a  while to respond to your post.
>
>BDO:   I exited out of this today at 14.5 cents, having purchased a couple
>of months back at 10cents. I'd really intended them as a long term hold but
>decided to follow one of my favourite old  guidelines,  "nobody ever went
>broke taking a profit". I'm still none the wiser as to why they rose the way
>they did [50% in a week]. It will be interesting if good news does emerge in
>the next day or so!!  I'm still a great believer in Business to Consumer
>ECommerce. It will have its day. No doubt
>there will be some casualities along the way. I may buy back into BDO on any
>price weakness.
>
>ITC:   Steven Tindill's family coy and ITC have now both increased their
>holdings in DVI to 41.8% each. CIBC's equity research paper on ITC published
>back in August estimated their asset backing to be around 25cents. I would
>concur with this.  The following on the Chinese venture is quoted direct
>from CIBC's paper: "ITC was recently awarded an 8 year contract to manage a
>US$20 million venture capital firm that is focussed on the Chinese IT
>market. Under the terms of the agreement ITC will receive a 3% fee [US$0.6
>million pa]  in addition to a 20% cut of all future profits generated by the
>fund."
>In my very humble opinion  ITC are presently severely undervalued by the
>market. The sale of Exonet  was a superb result and should, rationally, have
>seen the share price take a good leap upwards. Of course the share market is
>not necessarily a rational place and the price tumbled from that time.
>You may be able to get a copy of CIBC's report from their website,
>http://www.cibcwm.com.au <http://www.cibcwm.com.au>
>ITC's own website also keeps interested parties well informed,
>http://itcapital.net <http://itcapital.net>
>Disc. I hold ITC.
>
>Cheers
>John
>
>               -----Original Message-----
>               From:   Warner Lamb [mailto:cloud9@i4free.co.nz]
>               Sent:   Thursday, 2 November 2000 17:14
>               To:     sharechat@sharechat.co.nz
>               Subject:        Re: [sharechat] penny dreadfuls
>
>               John, by the look of replies, theres not much interest
>anymore. These are
>               just my personal opinions.
>               BDO..The last dotbomb to go under was an online beauty
>retailer....Since it
>               was issued at 25c, it will have alot of keen sellers with
>any upward
>               movement.
>               NGL.. no real reason today for improvement. Could have been
>one player
>               having a go. End of day there were 7 trades for $6K..not to
>breathtaking.
>               This is in a similar situation to BDO but worse coming off a
>high of 70c.
>               Breakeven now out to end of 2001, not 2000 from my
>understanding. Wont see
>               any of my $$
>               ITC.. I think has the most prospects (I have never owed but
>am considering a
>               punt around 20c). The 3D screen must have the biggest chance
>of payoff dont
>               you think?. I have been reading some articles about "head
>and shoulder
>               charts" and ITC, EFC, ADV and the rest seem to all be back
>to mid 99 levels
>               before any of the hype gathered momentum. Im not sure what
>is supposed to
>               happen to these stocks technically but you would think they
>are in oversold
>               territory. One concern for ITC is the small stakes they hold
>in most
>               companies (40% in DVI the largest) apart from 100% of
>Terabyte that is. They
>               still did well with exo net with only 35% but makes you
>wonder what
>               influence they have with only 18% of VS and 25% of Golden
>Orb.
>               Can you tell me more about Chinese co alliance. I hear that
>it covers some
>               expenses? Also assets and cash from what Ive read are now
>worth more than
>               shareprice....Can you confirm that.
>
>               Thanks
>               Warner
>
>
>
>
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