T.ITE: iTech Capital (TSE) Message Board

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

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To: kanda who wrote (2433)	11/23/1999 12:27:00 PM
From: keith massey	Read Replies (4) of 5053

Hard to believe we are actually down today...I've already added another 25K to the pile in the last 3 hours and have in my low ball bids. I just want to restate the importance of the Enviromation deal since I have got a ton of private messages, Emails and phone calls from people who think JDX are getting into the water business and just don't understand why they did they deal. I don't think a lot of people have clued into the fact that in the next 4 month an estimated 25-35% of the companies on the TSE will get delisted. In addition, on the NASDAQ if you don't have a core operating company you must pay out 90% of your earnings in the form of dividends which kills and potential for growth of a company. Plus without a core operating company there are several other sticky regulations that you must get around. A company planning to do a ICGE/CMGI model would be crazy to proceed without a core operating company to get around all the regulations. CMGI only bought out Alta Vista so they would have core operating company and not for the investment....Alta Vista was already fully valued when CMGI bought it out. It is going to take a while for people to realize why JDX bought Enviromation. Although Enviromation is a nice little company which will provide some good cash flow to the company and has the potential to go through a good growth phase it is the fact the JDX now has a core operating company and now meet all the new TSE regulations and can get around other tricky regulations that is the most important. Most people would probably ask why the didn't buy a Tech. company if they needed a core operating company. Well to stay on the TSE you need a minimum of $3 million in revenue. Most tech. companies are now selling for 15-25 times revenue even if they are losing tons of money. It would have cost JDX a minimum of $40-50 million to buy 100% of a company this size. They picked up Enviromation cheap and now can get on with the ICGE/CMGI model that they laid out perfect in their second release. The news yesterday put all the pieces of the puzzle together and after taking a look at who they are in bed with now and how these deals are laid out I just bumped up my price objective by 50% and plan on staying on the buy. Here are the TSE regulation released Oct 1/99 newswire.ca Best Regards KEITH

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