Kaiser says cooler IPO market serves iTech better
iTech Capital Corp ITE
Shares issued 30,374,357 May 26 close $0.80
Fri 26 May 2000 In the News
John Kaiser, writing in a May 9 Bottom-Fish Tracker, says iTech Capital --
the former Jordex Resources -- was treated harshly when the technology bull
market ran out of steam. Indeed, the stock peaked at $4.40 in March and was
$1.01 at the time of his report. Mr. Kaiser recommended Jordex in December,
1997, at 87 cents, again in December, 1998, at 50 cents, and in February,
1999, at 59 cents. In March, just as it changed its name to iTech, Mr.
Kaiser recommended selling 25 per cent of the stock at $3.74, noting that
it had gapped up on no apparent news. In the current report, Mr. Kaiser
says he has never been comfortable with iTech's strategy because he views
all initial public offering manias as unpredictable phenomena that
generally signal a bull-market peak. Mr. Kaiser says the irony is that
while iTech is wounded now, it is probably in a much better position to
make good decisions than during the past eight months when capital was
chasing practically anything. He adds that the $4.40 run was market driven;
when the company's story gets going, it will do a lot better than $5.
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