Forum Archive Index - August 2001

["Wedde, John" <John.Wedde@weltec.ac.nz>]

Keith,
Stockness says they have already bought back 3 mill. shares and they have
another 4.1 mill. still to buy back, making just under 10% of the total
shares on issue, 76 mill. according to Direct Broking.
 
Dave, yes I read the interview with Mr Ross. It does all sound promising.
Your other info. is also interesting.
 
Phaedrus - thanks for the techie view.
 
I've asked my broker to look at them and come up with a recommendation. He's
always flat stick but here's hoping. I think I sparked some interest in him.
 
Cheers,
John 
 

-----Original Message-----
From: Sproul Familly [mailto:msproulfamily@xtra.co.nz]
Sent: Thursday, 30 August 2001 21:13
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] Securenet [ASX - snx]


John,
 
Yes, my interest was aroused by the previous thread, and finished up taking
a small interest. in SNX. 
 
For what it's worth:
 
1.  They appear to be a smart bunch of cookies running a lean, mean
operation, funding most of their R & D out of cash flow.  They did  however
get a $2.6 million dollar R & D grant out of the Aust. government ( even
with $116 million cash in the bank!).
 
2.  They are concentrating on the Asian market , and M.D. Geoff Ross moved
to Hongkong with several of their top guys. They have formed some alliances
with large corporations including Hongkong Shanghai Bank and others , who
are putting the capital  into the Joint  Ventures, another cash-saving
benefit.  It is stated that there are a "bunch of big projects in the
pipeline."
 
3. If you have not read it , the best insight is in the Corporate File
interview with Mr. Ross, on the website at
 
http://securenet.com.au/ <http://securenet.com.au/>    or on the SNX company
news on Stocknessmonster
 
4.  I guess Securenet could be considered to be doing well , considering the
pounding taken by tech-type stocks  recently.  In the interview, Ross says
that they will probably be able to pick up some "quality assets at bargain
basement prices" .  So they are intending to spend a fair bit of the $116
million, it seems.
 
In conclusion, I would say that all tech stocks are speculative, but that
this may just be one of the better ones. 
 
The biggest problem I have with companies like this is that they hardly ever
are able to put dollar values to the worth of the contracts they win.  For
example , they have announced  a deal with the Hongkong Jockey Club, but who
knows what the revenue stream will be - maybe it's partly based on a
transaction fee and even SNX don't know??????
 
SNX is certainly a long term investment, and don't expect any dividends for
a few years.  And the chart trendline has been DOWN for a while, although it
appears to be flattening now. So there may be opportunities to pick up some
SNX under today's price. The were down around $1.18 August 17, before their
Annual report sparked some interest.
 
For myself, I will be keeping an eye on the $116 mill.cash over the next
twelve months or so to see what acquisitions they make, and if any of the
"bunch of projects" come to fruition.
 
All the best,
Dave
 


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