Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Kelly who wrote (1247)	10/24/1999 11:32:00 PM
From: keith massey	Read Replies (1) \| Respond to of 5053

Jordex has mentioned that if it does go in the multi-deal approach it would use a similar strategy to ICGE/CMGI/SFE. These type of groups are not just holding companies like many venture funds but take an active role in the companies they hold. For example - from the Internet Capital Group home page Our operating strategy is to integrate our Partner Companies into a collaborative network that leverages the collective knowledge and resources of Internet Capital Group. Acting as a long-term partner, we use these collective resources to actively develop the business strategies, operations and management teams of our Partner Companies This is the main reason why these type of companies sell for large multiples of their asset value. In addition, if this approach is taken Jim Graham mentioned that they would look into getting shareholders pieces of IPO's of the companies they hold similar to SFE's strategy which would just add more value to the company. This puts a company like JDX head and shoulder above most venture funds. You are correct that each investment is of a speculative nature in this type of company. However if extensive DD is performed on each company before any investment is made and 100-1000's of deals are looked before they take even one it takes much of the speculative nature out of the investments. You are also correct that by doing several investments they reduce their risk through diversity and it only takes on large success to make the company a winner. Most Canadian investors do not have any route to participate on the bottom level (pre-IPO) of telecommunications and business-to-business e-commerce sectors, especially in their RRSP accounts. As this story start to unwind and people realize what JDX is up to I think we will be very pleased. Best Regards KEITH