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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (82989)	1/15/2003 10:21:14 PM
From: SEC-ond-chance	Read Replies (3) \| Respond to of 122087

Coach was New Tel's biggest fan....he was even accused of being Ray Dirks .......wonder what happened? It's a shame the way honest investors are treated! China Play Controversy Wednesday, January 19, 2000 - viewed 604 times From: (General Interest) - Article Number 114 by: Vivian Lewis In Dec. 1999, the number of Internet users in China rose to 8.9 mn, four times the level a year earlier. By Dec. 2000, the number of Chinese Internet users is expected to reach 20 mn, according to a government agency, the Chine Internet Network Information Co^ as quoted in China Economic Times. On Jan. 10, Golden Tripod Technology Ltd. owned by Hong Kong Xinhua News Agency and itself a major shareholder of China.com (CHINA-Q), issued a statement denying that New Tel had a relationship with Xinhua. New Tel (NWLL-QSC) is an Australian company, the former Transcom, recommended by this newsletter, in technology and telecommunication. NewTel in fact is creating a joint venture with Xinhua, its 15% shareholder, for a China web portal, as yet unnamed. It hopes to become a major Chinese Internet service provider and Chinese/English language portal. It plans with Xinhua to partner 18 Chinese government enterprises for the first sites, of which New Tel will own 35-50%. New Tel issued a rather feeble Bloomberg release on Jan 13 disputing the Golden Tripod contention, saying that "New Tel’s Xinhua link has never before been called into question". New Tel also disputed the Golden Tripod claim that An Zhou, a New Tel director, was not from Xinhua; in fact he was a senior officer at Xinhua, according to New Tel, and had been for over 20 years. New Tel said it already has 25,000 China phone customers secured through Xinhua. The new Internet site will be financed by a US$220 mn share issue enabling NWLL to pay A$400 mn to Xinhua. To benefit from the rights, we advised last issue that readers convert their ADRs to ordinaries, collect the rights, and exercise them. We did this last summer when the last payment to Xinhua was financed this way and sold half our stake in NWLL while keeping the share fully weighted. We would advise buying more now. New Tel fell $3.75 to $13.25 Jan. 11 before recovering as investors realized that the Golden Tripod statement was misleading. It may have been part of a bear raid (short-selling), or related to China.Com seeking to raise $250 mn with a private placement via Lehman Bros. China.com is the AOL partner in Chinese Internet. Hong Kong is frequently used as a center for disinformation. Our readers have owned NWLL since Mark Hake wrote up the stock for us. In addition to her personal stake in New Tel, Vivian also owns more via a limited partnership. Mark now is on the New Tel board and will not tell us what to do, but we’re not speculating short-term on the China card. The stock sold off sharply. Its prior rise came from China cowboys, day traders, and momentum players, who pushed the share as high as $54 on Jan. 4 mainly by egging each other on. It was the 3rd most heavily traded stock in the "Island" after-hours market that day. RagingBull.com, a bulletin board favored by some wild characters who call themselves "greedaholics", or Yahoo.com, whose New Tel reports are signed Mikhail Gorbachev, reported frantically on the stock. The cowboys while trading insults appear to have little knowledge of NWLL. While who is behind the Golden Tripod disinformation campaign is unclear, the mudslinging against New Tel may be related to China competition for influence over Internet connections. Ray Dirks, at Security Capital Trading, wrote a report recommending NWLL to clients. Dirks may appear on RagingBull’s website, as "coach", cheering on the bulls. He refused to confirm this. New Tel, after the short-selling, is reported to be changing its depositary from Deutsche-Bankers Trust to Bank of New York, to limit their depredations to 110% of the total ADR volume. We want another initiative by NWLL CEO Peter Malone: treating ADR owners better. Currently every time there is a spinoff or rights issue we must convert our ADRs to Australian ordinaries (1:10). We could not do so for the spinoff of the diesel interests timed too short to convert our ADRs to ordinary shares, admittedly something we were not mad keen on. We hope New Tel will succeed in getting Xinhua to issue a statement supporting its position against Golden Tripod, which should send the stock soaring. Meanwhile, the Sydney Morning Herald revealed that the company had raised A$17.7 mn from local institutional investors as part of making its China plays a reality. In after hours trading, New Tel again was the largest gainer on Jan. 18, indicating Down Under buyers.