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International Investing / Australia (All-Ordinaries)


Subject:  Re: Iocom / Optima Date:  1/30/2002  7:21 AM
Author:  wayjo Number:  3424 of 6186

Karina, until you posted this I had never heard of Iocom. However, I have done a small amount of research over the past hour and I think from my assessment this "investment" can probably be considered an education in sharemarket hype.

A brief history as I understand it....

- Floated onto the sharemarket in December 2000 at $1.00 per share.
- Made various public announcements about all the wonderful things they were going to do and alliances etc...
- Made a profit in 2000/2001 year of about $900k because of Y2k etc..
- Made a number of acquisitions issuing shares each time to buy the business.

June 2001:
Announce a loss of $12m dollars and write off $5m due to the acquisitions. Even without the write off they still made an operating loss of $7.2m on sales of $8.2m. For every dollar coming in the door they were spending $1.90 to make it.

So after raising $12m in shareholders funds, they now sit at $1.5m due to accumulated losses. Latest Cash flow report for September shows they burned through another $589k.