T.ITE: iTech Capital (TSE) Message Board

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Gold/Mining/Energy : T.ITE: iTech Capital (TSE)

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To: SwampDogg who wrote (2314)	11/22/1999 5:44:00 PM
From: keith massey	Read Replies (6) of 5053

The reason we had selling today was because of the Enviromation deal and not because the news was not great. People were waiting for a bunch of tech./internet deals and were disappointed when they saw the Enviromation deal. The two alliances and the TMP Worldwide announcements were amazing by anyones standards and if they had come out with those releases by themselves we would be at $2 or higher right now in my opinion....however a bunch of people that can't read between the lines or think things out where concentrating on the Enviromation deal and sold....these people have totally missed the point If anyone remembers...back in June of this year CMGI bought out Alta Vista. Up to that time CMGI was just a holding company. They purchased Alta Vista so they would have a core operating company that would get them around several tricky U.S regulations. For example, a 1940 regulation forces all public companies that are just holding companies with no core business to pay out 90% of their earnings in the form of dividends. Of course this would kill the growth of any company and has held many companies down. By having a core operating company CMGI is no longer in the "holding company" catagory and gets around this regulation. This move to buy Alta Vista was praised by analyst for this exact point. Now move on to JDX. Why did they buy Enviromation?....for very obvious reasons....they now have a core operating company and also now meet all the new TSE regulations. I don't know if anyone is aware of this but on Oct 1/99 the TSE released a whole new series of regulations for listed companies. newswire.ca This includes A minimum market capitalization requirement of $3 million coupled with an increase in the market value of the public float requirement to $2 million (from $1 million.) An increase in company assets to $3 million (from $2 million) and revenues to $3 million (from $1 million) that will help the TSE identify companies with reduced activity levels or unsatisfactory financial results. If a company on the TSE does not meet these requirements they are off the TSE by March 31, 2000. There are going to be a ton of companies kicked off the TSE in the near future. There are hundreds of companies that don't even come close to meeting these new requirements and this time they are getting enforced. There is no way JDX could have bought 100% of a tech. company with $3 million in revenue....it would have cost them more than $20 million. By buying Enviromation they have killed a bunch of birds with one stone. The have a core business when the go to the NASDAQ, the don't have to worry about the TSE listing and for a small amount of cash they have a constant cash flow. I think people should really sit back and think about what was released today.... it was a brillant move on JDX's part and I think everyone missed the point. Best Regards KEITH

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