Sharechat Logo

AXA tops up Advantage stake

By Phil Boeyen, ShareChat Business News Editor

Friday 28th July 2000

Text too small?
Advantage is getting the thumbs up from the investment arm of AXA New Zealand.

AXA has increased its stake in the NZ tech stock from 6.54% to 8.11%, or just over 4.7 million shares.

AXA chief investment officer, Barry Lindsay, says he is viewing Advantage positively because it offers strong growth prospects combined with a good balance sheet.

"I like the fact that it is financially sound. We don't view it as a stock with a high cash burn rate, but as a growth company with a range of activities."

Mr Lindsay says AXA purchased its shares in the $2.50 to $2.60 range, which he says is good value. AXA had previously paid over $3.00 per share for some of its holding.

While he admits some may view Advantage as a higher risk stock, Mr Lindsay says higher risk has its appeal and can be tempered by balancing a portfolio with low risk investments.

"We follow the notion that risk must be understood rather than avoided," he says.

Mr Lindsay says Advantage is also in favour with AXA because it has a high market capitalisation for a local tech stock and good liquidity.

Advantage shares traded over $5.50 before the tech bubble burst in April this year, and have been trading consistently under the $3.00 mark in past weeks

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

[Budget Preview] Watching for surprises
Advantage out of Strathmore
Advantage on course with Air NZ deal
Advantage launches first 'Air Cash' initiative with E-phone

IRG See IRG research reports