US director gives IT Capital thumbs up

Friday 26th January 2001

By Nicholas Bryant

Listed technology conglomerate IT Capital has received a vote of support from its patient backer, cornerstone shareholder Snider Capital, despite a share price that refuse to budge much off 20c.

Off to walk the Holyford Track before today's board meeting in Queenstown, the US head of Snider Capital, Jay Snider, said his "powder is dry" after six months watching the market and that now was the time to buy companies.

IT Capital managing director Keith Phillips agreed, though he would not specify what was in the wind or whether Mr Snider planned to make further investments with IT Capital.

"Having not put any new money to work since June, Snider Capital has three deals in negotiation and will probably have another three on the go in the next six weeks," the sports and leisure venture capitalist said.

He is deeply committed to IT Capital's model, which includes Virtual Spectator, in which IT Capital has an 18% stake.

"The attraction of Sandy Brown [ex-ESPN] was not chance; Virtual Spectator has a very large market. The sailing application is niche but with auto racing, football and other big US sports its future is huge," Mr Snider said.

DF Mainland head of research Bruce McKay backed those sentiments, saying it would help improve the market's view of IT Capital.

"Investors have found the company hard to value but should be very clear that to move someone like Sandy Brown from Hong Kong up to Virtual Spectator's new head office in New York shows it to be a serious company," Mr McKay said.

Mr Brown's job will be to secure deals with sports organisations, marketing groups like IMG and television networks, all of which have complex arrangements for the rights to their television and internet coverage.

Virtual Spectator uses proprietary software and 3D animation to produce enhanced viewing of sports on television and the internet.

In keeping with IT Capital's philosophy of finding, growing and selling businesses at a profit, Mr Phillips said two eventual options for Virtual Spectator were a Nasdaq listing or sale to a global media group.

Other companies in the IT Capital stable are web development company Terabyte Interactive (100% ownership), 3D kiosk screen producer Deep Video Imaging (41.8%) and web storefront and networking business Golden Orb (35%).

The company has $20 million available for investment, $12.3 million of which came from the successful exit of its 33% stake in exo-net International last year.

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