Forum Archive Index - January 2001

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

Hi RIL,

I'll have a go at answering your question on the difference between Commsoft
and Telemedia.

>From Telemedia's website:

"Telemedia Networks International Ltd designs, develops, integrates and
supports state of-the-art enhanced services solutions to Carriers and
Service Providers worldwide

Products and Solutions:

Prepaid And Postpaid Telephony
Messaging
Convergent Billing And Customer Care
Intelligent Switching
Mobile Internet"

>From Commsoft's website:

"CommSoft Group Limited is an Australian-headquartered company which
develops, markets and supports software designed to help businesses manage
their telecommunications. CommSoft products provide the tools to control
costs, monitor customer service, manage resources, identify trends and
minimise fraudulent behaviours."

Commsoft's website also says this:

"CommSoft software products satisfy a substantial and growing demand by
Small and Medium-sized Enterprises (SMEs), for:

Communication Management Software (CMS) which provides business managers
with the information necessary to understand and control the costs
associated with telecommunications; and telephony enabled Customer
Relationship Management (CRM) software, which assists a company to increase
profitability by better understanding and responding to its customers."


Thus, it seems that Commsoft seems to be a pure "software" play, whereas
Telemedia offers a far wider range of products, products that are used by
telecommunications companies worldwide, with clients ranging from Deutsche
Telekom, Virgin Mobile, to Cable & Wireless.

Commsoft are selling their software to small businesses, whereas Telemedia
are targeting larger companies (check out their announcement today - story
URL here:)

http://www.sharechat.co.nz/articles/20010109-TMNtukadeal.shtml

Thus, there is a possibility that investors regard the growth potential of
Telemedia (because of the size of their potential business) to be far
greater than that of Commsoft, hence the price difference - this conclusion
is just after doing some preliminary investigations though, I haven't
examined either company's balance sheets.

Many people have compared Commsoft to Telemedia in the past, and this has
upset Chris Jones, founder and CEO of Telemedia.  Check out this article
from the NBR (published in March this year) which talks about this:

http://www.sharechat.co.nz/articles/nbr/20000317-07-news.shtml

Thus, perhaps we are comparing apples with oranges anyway - but, FWIW, my
pick of the two?  Telemedia.  Chris Jones is an impressive businessman, and
I believe his company has massive potential.

>From what I've seen of Commsoft they too seem to be leading their field and
I'm looking forward to hearing more about their story in the not too distant
future.  Commsoft could well have reached the "oversold" stage at the
moment.  Let's see what happens.

Best Regards

Benjamin Dutton
(Disc. do not hold TMN or CSG)

P.S.  UBS Warburg were the underwriters for the Commsoft float - thus they
probably have a good insight into the business.

----- Original Message -----
From: "RIL" <ril99_99@yahoo.co.uk>
To: <sharechat@sharechat.co.nz>
Sent: Sunday, January 07, 2001 3:24 AM
Subject: [sharechat] Commsoft


> I think this stock is looking interesting now too. I
> am interested to see that UBS Warburg rates it one to
> watch as per previous posts.
>
> UBS is a good firm too.
>
> CSG hit its targets. Collection a little slow but
> company performing to plan according to ASX release.
>
> Profitable tech, convergence company, global focus and
> forecast P/E is lower than a snake's belly.
>
> Can someone tell me what the difference is between
> this company and Telemedia which trades at triple the
> price. Same profitability, same issued share number.
>
> Au revoir mon amis.
>
> The mercurial RIL.
>
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