Sharechat Logo

Investing Money

Friday 15th September 2000

Text too small?

Investors hang up on telcos

Telecom is not the only telecommunications company out of favour with investors. Listed market minnows Newcall Group and e-Phone have both seen the value of their shares punished this year. Newcall has lost more than 50% in the past four months while e-Phone has done the same since the beginning of April. Losses from major players in the same period Telecom (28%) and Telstra (13%) appear moderate by comparison. Those hoping for a rebound may have to wait a while judging by an article in the latest Fortune magazine. Entitled "Telecom [munications], what a wreck!" it says margins are low in the face of increasing competition and "the industry is probably going to get worse before it gets better."

Brierley fancies US dollars

Brierley Investments' proposed share restructuring calls for a change of the currency denomination of its shares from New Zealand dollars to US greenbacks. This would give the company an authorised capital of 10 billion shares with a face value of 10USc each. If this is approved by shareholders, the company proposes to cancel half its shares, giving it five billion shares of 20USc each. If the deal goes through, local investors can expect the price of 37c to double to 74c. But this doesn't alter the market capitalisation of the company which will remain at about $1 billion, a long way short of its peak market value many years ago that was several times higher.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

GEN - Completion of Purchase of Premium Funding Business
Fletcher Building Announces Executive Appointment
WCO - Director independence determination
AIA - welcomes Ngahuia Leighton as 'Future Director'
Mercury announces Executive team changes
Fonterra launches Retail Bond Offer
October 29th Morning Report
BIF adds Zincovery to its investment portfolio
General Capital Resignation of Director
General Capital subsidiary General Finance update