Forum Archive Index - May 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi winner69,

>
>
>On Baycorp Advantage. Snoopy said
>
>>"There has been discussion on the forum about the price falling and
>>whether the current price reflects a suitable entry point.  What
>>chart would you look back on when making your decision?  Baycorp or
>>Data Advantage? Perhaps you look at both separately?  Or perhaps my
>>solution which is looking at a combined chart based on both 
>>previous charts is the way to go?"
>
> 
>Only one answer to the question you posed. You would have to look
>at the BCA (renamed from DAD) chart which goes back some years in
>Australia and only back to December in New Zealand. Why? Data
>Advantage 'took over' (some say a merger) Baycorp by issuing shares
>to the Baycorp shareholders. Baycorp does not now exist on either
>exchange. Data Advantage changed their name to Baycorp Advantage -
>that is the entity punters now have an interest in.
> 
>

 
Agreed in part.  Obviously if you are looking at a short term chart 
you just look at BCA.  It is the only entity that now exists, so no 
argument from me on that.   My point was meant to refer only to 
medium and long term trend lines, that went back *before* December 
2001.   Sorry if I didn't state that explicitly the first time.


Your solution 'winner69' is to just look at the DAD chart only?


According to my research the BCA merger terms were:

-----------
"Shareholders in Baycorp will receive 1.56 new Data Advantage shares
 for every one Baycorp share they hold on the record date for the     
  merger."

"Data Advantage shareholders will own approximately 42.2% of the 
merged group and Baycorp shareholders 57.8%."
------------


Your solution Winner69 means that the original Baycorp chart is 
purged from your decision making.  I'm not saying you're 
definitely wrong.  Yet it is clear that most of the shares in 
combined entity came from Baycorp shares not Data Advantage shares.  
Don't you think your decision to ignore the the support and 
resistance levels built up by the *majority* of shareholders (the 
ex-Baycorp shareholders) over many years is a little odd?

SNOOPY



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