Forum Archive Index - December 2000

["hugh webber" <hugh.webber@clear.net.nz>]

hmmmm,
I did miss another couple of ways of rewarding shareholders 
i.e. (ix) return of capital to shareholders on pro rata basis - but this
requires some sort of cash suplus planning whereas firms like
ITC are in chronic cash deficit binds
      (x) concesional share issues and share bonuses to shareholders
- but ITC's share price isn't high enough to stand this and it would 
make the final fall to penny dreadful status.

I think firms like ITC are performing a useful economic function in
mobilising investment into new technology but its just a pity
they don't have some all round vision to realise that it won't work
in the long run unless (a) they do some positive cash flow oriented
planning (b) develop a strategy for rewarding shareholders.

The much better alternatives to actually investing in ITC are to either
sell them ideas, become a director or less desirably an employee
but keep your suitcase packed.
I don't see them as a long term spec investment because they won't
be long term unless they cover (a) and (b)....



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