Forum Archive Index - February 2002

[Derek <dkw@paradise.net.nz>]

>I notice that the share price trended downward from about when the new
>management was appointed at the end of last month, so it looks, on the
>face of it, as if the market wasn't happy with those appointments, and
>yet both of those individuals appear to have good, relevant skills &
>experience.

The markets immediate response to the new management was very positive
with the shareprice increasing by about 30%.

This was followed almost immediately by an honest appraisal by
the new management of the state of ITC. This sent the shareprice back
down.

Then came the right-downs in all but Deep Video Imaging. The are concerns
around that this is now their only really promising investment,
and even then it is still a risky one.

Actually I think that if it wasn't the confidence that the
market has in the new management the shareprice would have
gone even lower - Normally investment companies trade at a
discount to their NTA.

My amateur estimate of the current assets goes like this

Shareholders equity as at 30/09/2001  $16.5 M

Rightdowns on 22/2/02  $9.7 M

Current shareholders equity :$16.5 - $9.7 =  $6.8 M

Number of shares:  171.5 M

Current equity per share = 4 c 

Regards,
Derek

(disc. hold some itc and would buy more if the price fell a bit more.)


>I'm curious, is there an underlying factor which I have overlooked?  
>Would anyone like to suggest an explanation for this?
>
>Thanks
>D


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