Forum Archive Index - March 2001

[Mike Hudson <MHudson@placemakers.co.nz>]

Heather wrote


Now..... regarding Te Ranginui's query about Commsoft. I too want to know
more about what has (obviously) gone wrong! Is this a general result of loss
of faith in tech stocks? Is poor management playing a part in the demise in
this company's share price. I am suprised as I felt CSG had much
potential.So.... to some of you more knowledgeable share chatters, that
maori(?) fulla and myself would love our genuine questions to be
answered.Thanks. 


I wouldn't class myself as being knowledgeable and I have no idea and
neither do I want to know what GSG does but what has gone wrong is fairly
clearly stated in today's announcement. They have had to provide for (and
probably will have to subsequently write off)  $4.2m in bad debts. For a
company that has an annual  turnover of about $8m or so it is a major
disaster; firstly a horrible jolt to the bottom line and secondly the loss
of a large chunk of the customer base. 
 
As it would appear that most of these debts were incurred before the company
was listed there are bound to be a lot of questions raised and likely to be
a few lawsuits flying around. 

And they say that NZ is a wild west market!

I would cut your losses on this one.

Cheers
Mike H  






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