Baycorp gallops onwards and upwards

By Phil Boeyen, ShareChat Business News Editor

Thursday 3rd August 2000

Baycorp raced towards the $13.00 mark on Thursday as investors continued their positive rating of the stock.

The share price hit a new high of $12.70, up 40 cents on the day.

It's believed much of the future growth potential has already been built into the share price, but that isn't stopping further upward pressure.

Talk of another share split has also been rife, and Baycorp has stated that it is something that is continually under review.

BCH's shares were priced at $10.25 before the split in May last year.

Investors certainly appear to have shrugged off concerns that Baycorp's Australian rival, Receivables Management Group, would eat into its business.

RMG has been trading at around 35 cents, barely above its issue price, despite a number of acquisitions since listing.

RMG's latest announcement was that it was planning to buy Australia's largest collector of business-to-business debt, Credit Solutions Australia, which has revenues of $12.6 million.

Income from the new company will push RMG's projected revenues to just under $89 million for the year to 30 June 200, and give it a quarter of Australia's collections business.

BCH has stated it expects results this year to be its sixth year of earnings growth exceeding 20%, with analysts picking a profit of around $16 million, up from $13.5 million last year.

Baycorp is due to announce its full year result on August 24th.

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