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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (4773)	4/6/2000 5:37:00 AM
From: sunny	Read Replies (1) \| Respond to of 6020

i don't get it any more. another pre-announcement - bad news this time. Softbank warns of hefty group current loss (Reuters 04.06 10:29:10) TOKYO, April 6 (Reuters) - Japan's high-flying Internet investor Softbank Corp warned on Thursday it would fall deeper into the red on a group current basis in the just ended year, a move which analysts said could further undermine already shaky sentiment towards the company. Softbank said it would suffer a 55 billion yen ($525 million) consolidated current loss in the year to March 31, partly reflecting a 47.5 billion yen foreign exchange appraisal loss in yen-denominated debts held by its U.S. holding company. The loss would compare with a 15.45 billion yen group net loss in the previous year. Softbank's loss warning came after the market had closed. But Softbank's shares have been on a recent downtrend, hurt by a combination of factors including recent volatility in the U.S. Nasdaq market and fears that it is facing a funding crunch. Softbank, a core Tokyo Internet stock, ended on Thursday down 3,000 yen or 3.92 percent at 73,500. That is a drop of more than 60 percent from mid-February when it hit a record high 198,000. ($1=104.83 Yen) REUTERS S.RT 9984-T JP.R ASIA.R DPR.R RESF.R RES.R ELC.R BUS.R

To: Taikun who wrote (4773)	4/6/2000 6:29:00 AM
From: Edwin S. Fujinaka	Respond to of 6020

I believe that Son has explicitly stated that stock options were the way to attract and hold top talent in the Internet business. I think that stock in a non public company that is scheduled to IPO in the near future could be even more attractive. Most of these Internet IPOs suffer large shareeholder dilution, but the strong run up beyond the IPO price is a strong lure (at least up until now). That Investment Company Act of 1940 seems to have a lot of provisions for loopholes and exceptions. I think that the SEC is on record as being pretty flexible in the application of this law. I think the basic law ought to be reviewed in the light of all of these Internet VC Companies. I have to admit that I don't understand all of the ramifications of the law as currently written. It will be interesting to see how Yahoo fares in getting an exemption. They and others need a permanent exemption, not just a temporary exemption. Maybe a political contribution is in order here. Perhaps Bill Gates should have played ball a little more <G>. (I think he is beginning to.) Softbank closed down 3000 yen in Tokyo to 73,500 yen or $701. This is well below the close in the US OTC Market at $770. Nikkei Net posted a couple of negative stories: Wednesday, April 5, 2000 Govt Delays Softbank Affiliate Net Loan Service OSAKA (Nikkei)--The government is trying to delay an affiliate of Softbank Corp. (9984) from starting a service introducing individuals to lenders over the Internet, The Nihon Keizai Shimbun learned Wednesday. The government has decided that E-Loan Japan KK's operations amount to brokering loans under law and is thus demanding that the firm register as a lender. The affiliate contends, however, that the service is a form of advertising and not loan brokering and is refusing to accede to the government demands. The company's Web site will introduce banks that offer auto loans and other financing and will forward loan applications to individuals upon request. The site has already made agreements with a few banks and has begun testing the service. The company plans to begin collecting fees from the banks in mid-April. (The Nihon Keizai Shimbun Thursday morning edition) -------------------------------------------------------------------------------- Thursday, April 6, 2000 Stock Market Outlook: Lack Of Focus Creates Chance To Buy TOKYO (Nikkei)--The Nikkei Stock Average looks set to test the 23,000 level before the end of June, says Yasuhiro Sodeyama of the investment management division at Dowa Fire & Marine Insurance Co. Ongoing restructuring has improved many firms' balance sheets, and their appetite for capital spending is growing, led by investment in information technology, Sodeyama says. Many companies are clearly taking a forward-looking stance and are poised for growth, he says. A large volume of postal savings deposits start maturing this month, which Sodeyama says should gradually have a positive effect on the supply-demand balance. The stock market lacks a clear focus at the moment, so it will be no surprise if the postal savings money does not rush in to stocks, he notes. But if interest rates remain at current levels, those funds will most likely flow to stocks in a steady stream, he adds. One must suppose that the sudden change in political leadership will likely be a negative near-term factor, Sodeyama says. Prime Minister Keizo Obuchi was always able to act quickly once decisions were made, and made a significant contribution to getting the economy back on its feet, Sodeyama adds. He predicts that both foreign and domestic investors may step back from the market as they take some time to evaluate the new government. IT shares, which had been the main engines of the market, were clearly overbought, and the correction is likely to go on for another one or two months, according to Sodeyama. For a time, companies like Sony Corp. (6758) and Fujitsu Ltd. (6702), which are building clear business models based on IT, may even look cheap, he says. Some fund managers, faced with redemptions, find themselves unable to sell companies like Softbank Corp. (9984) or Hikari Tsushin Inc. (9435) due to a lack of buyers, so they are selling other IT shares instead. This is creating a situation in which some shares are being sold regardless of their earnings or growth potential, which looks like a buying opportunity, Sodeyama says. (The Nikkei Financial Daily Thursday edition) --------------------------------------------------------------------------------