The Motley Fool Discussion Boards
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.
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.