Sharechat Logo

Baycorp battles to win back market confidence

Friday 12th September 2003

Text too small?
Investors in the shares of Baycorp Advantage have had a good few weeks.

Since hitting a low of $1.04 in February the share price has more than doubled its value to reach a recent high of $2.62.

The price has dipped this week to around $2.50 but there are signs that the company is slowly regaining the market's confidence.

AMP Henderson this week increased its shareholding to 9.3%.

But investors will be looking to a new appointment to replace managing director Keith McLaughlin, who announced his retirement late last month.

Baycorp shares were initially buffeted by the threat of increased competition to its core consumer credit referencing business.

Things took a turn for the worse when the company warned it wouldn't meet its profit forecasts for the June 2003 year, mainly because the synergy gains promised from its merger last year with Australia's Data Advantage were running behind schedule.

The market was savage, slashing the company's already battered share price by half.

Then the company posted a net annual loss of A$19.4 million ($22.0 million), compared with the previous year's A$300 million loss.

However, Baycorp is committed to reducing its operating costs. The company is targeting about $7.2 million per month, as the merger benefits slowly roll in.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years

IRG See IRG research reports