Forum Archive Index - October 2003

[Charles Harvey <nbs@pl.net>]

As one who did post a warning on this float I will not gloat with rightness
but wish to take issue with the NZX for not monitoring this charade.
Firstly, let's ask the question, who purchased this 'oversubscribed scaled
back' float? My hunch is somebody is left holding a rather large parcel of
stock. When it is talked up to the degree Dorchester and the FTB directors
talked it and then plummets like no other float that I can remember,
questions must be asked.

This example offers little confidence to uninitiated investors. The NZX
needs to come out and explain (the directors wont, they're too busy sewing
dresses and sails) why investors have lost at least 20% of their investment
in just a few trading days. It appeared to get propped up on Friday after
going minus 40% yet looks southbound again. I suspect Gaynor (Herald) is on
to it now but where is the NZX for comment?

To those who were suckered by the sex appeal of the float promotion, I
suggest you can put it down to good old experience. Maybe your decision was
vodka impaired. Piddling your money into pumped up penny stocks is a deadly
business unless you are a very experienced and decisive trader. I'm sure
there is not a single institution or serious investor who looked past the
glossy outer image on this one. The register will soon tell.

As for the original stakeholders, well I don't bemoan the original
stakeholders a reasonable profit but when they are issued shares at less
than 1 cent (see NZX announcement excerpts below) and then ask the market
for 50 cents (less warrants value) you have got to ask, is this reasonable.

The answer is no. A lot of genuine investors just got themselves fleeced by
some South Island sheep rustlers in designer swandris. The greatest value
added to this company is from the cash injected by recent subscribers. It's
a good lesson for us all and an opportunity to bookmark some names ( the
directors & Dorchester) for the future.


All the best, Charlie.

  

Excerpts from NZX announcements



Description 

- Southern Skies Holdings Limited acquired 49 shares from Better Living
Holdings Limited for $1.00 on 16 May 2002, sold 3 shares to Better Living
Holdings Ltd for $24,000 on 27 June 2003 and on subdivision in August
2003,these 46 shares converted to 5,011 shares.

- On 30 August 2003, Geoffrey Ross, Justine Ross and Darren Abernathey
   (jointly) subscribed for 380,000 shares for $1.00 per share and these
   380,000 shares were then subdivided into 41,394,989 shares.


Description
           
- On 30 August 2003, Grant Baker, Donna Baker and Paul Smithies (jointly)
subscribed for 223,043 shares for $1.00 per share and these 223,043 shares
were then subdivided into 24,297,059 shares.

- Better Living Holdings Limited acquired 100 shares for $1.00 on 16 May
 2002, sold 49 shares to Southern Skies Holdings Ltd for $1.00 on 16 May
 2002, acquired 3 shares from Southern Skies Holdings Ltd for $24,000 on
27June 2003 and on subdivision of these shares in August 2003, these 54
shares converted to 5,882 shares.  On 17 May 2002, Grant Baker, Donna Baker
and Paul Smithies (jointly) acquired 50 shares (being 50% of the shares on
issue and is entitled to 50% of the underlying assets) in Fernglen Ltd for
$1.00 per share and on the same date Fernglen Ltd applied this money
toward the purchase of 100 shares in Better Living Holdings Limited for
$1.00 per share on incorporation of that company.




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