Forum Archive Index - November 2000

["Bill" <billbray@xtra.co.nz>]

Hi John

Interesting thoughts on ITC options. I, too, am a long time follower (and
holder) of head shares. I have been trying to fathom John Setons involvement
and I must say you've perplexed me with your comment about the ITC origin.
I have always understood that Iddison begat Aquaria.  Am I quite wrong here
??
In respect of the option discussion.....I would have no hesitation in
emailing Keith Phillips and asking him what the Hell is going on and who the
optionholders are etc.  He needs support in that Company and if he wants it,
he has to come very clean with the faithful, IMHO.

Cheers

Bill

----- Original Message -----
From: "Wedde, John" <john.wedde@cit.ac.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, November 08, 2000 9:33 AM
Subject: RE: [sharechat] ITC's directors' share dealings


> Hi Gerry,
> No, I don't think you are being naïve.  As an openly confessed ITC fan I
> must say it was increasingly irritating as the share price dropped as each
> load of options was converted in recent  weeks. Unfortunately today I'm
away
> from home base and do not have access to my files so much of what I'm
about
> to say is off the top if my head stuff --- nevertheless I'm confident
about
> its accuracy.
> Firstly the recently converted options were at 17.5 cents. ITC traded at
> under 25 cents during much of the time these were being converted. Sure
> there is a discount here, perhaps  as much as 40% in some cases, but
> sometimes as little as 14% and we shouldn't forget that options have much
> more risk attached to them than the head share.  Don't forget, if options
> are "out of the money" then of course thy become totally worthless.
> Secondly, the options recently converted amounted to a dilution of about
10%
> of shareholders funds. This is hardly a huge amount and it is worth noting
> also that the share price dropped by a far larger amount over the time
when
> these were being converted. I found this hard to understand especially as
> all the news on ITC  was very positive over this period.
> David Seton, I believe, was a director of Iddison,  the shell company that
> ITC backed into. It would be reasonable to assume that the cheap shares he
> received were part of the consideration agreed to at the time of the
> consolidation of the two companies.
> I suspect also that the whole idea of options is very "American' and their
> use these days to reward people is far greater than in previous times.
> Perhaps in NZ we havn't quite got to the point were we accept and
understand
> them as they do in the States.
> Nevertheless when I return to my office and have access to my filing
cabinet
> I will review all my information relating to ITC options.
> Still committed ITC fan but watching closely,
> John
>
> -----Original Message-----
> From: Gerry Tyler-Smith
> [mailto:g.tylersmith@ext.canterbury.ac.nz]
> Sent: Tuesday, 7 November 2000 16:52
> To: sharechat@sharechat.co.nz
> Subject: RE: [sharechat] ITC's directors' share
> dealings
>
> 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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