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International Investing / Australia (All-Ordinaries)


Subject:  Re: Please help me ? Date:  7/23/2000  11:16 AM
Author:  chrischalkley Number:  1616 of 6186

Hi, Bob,

You might find some useful info here. (You may have to register):

You will find the company is high in debt and has not had a profit for years. It has options on a few speculative ventures. It is of course a fairly speculative company. Its ROE has been known to vary from +1900% to -9000% from one year to the next.

I don't know any more than that about Newlands. I also don't know anything about moneyguru's earnings. Especially don't know how much revenue is expected to be paid back to NRL from its ownership of moneyguru, if the deal goes ahead.

Reporting standards for mining companies are less stringent than for industrial stocks. In the past year, number of West Australian mining companies have attempted to latch on to the technology boom. It may be that those looser reporting standards make it easier. I thought the idea had stalled since the ASX cracked down late last year, and with the collapse of the dotcom bubble. (I think they may have even delisted a few companies).

In addition to that risk, you'd also be running additional risks like international currency speculation, and tax regimes in different countries. You would probably have to watch it very closely. Remember our market is open at night, your time. (Australia is about about nine hours ahead of French time). How would you propose to track it?

It seems extremely risky to me. Any money put into it would be pretty well in the category of 'Gambling Money'.

I don't want to rain on your parade, but I hope you have considered all these things already.

Good luck,


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