Gaynor on Wednesday: Directors line up for treats at Brierley trough

The gravy train continues to roll at Brierley Investments.

In Hong Kong on Monday - yes, the company is incorporated in Bermuda, has its main listing on the Singapore Stock Exchange and most of its shareholders are in New Zealand but it now holds meetings in Hong Kong - shareholders approved the issue of up to 273.6 million options to executives and non-executive directors.

The options can be exercised at BIL's average share price in the three days before the granting of the options.

They will replace options issued to Greg Terry and other executives in November 1999 which are able to be exercised between 65c and 90c a share.

Chairman Sir Selwyn Cushing - who in 1999 was granted 15 million options exercisable at 45c - can also take part in the generous scheme.

The new options follow a 60 per cent rise in directors' fees, approved at November's annual meeting.

BIL certainly knows how to look after its directors and executives - it is a pity it can't do the same for shareholders.

Advantage Group


There has been an enormous mood change at Advantage. The hype and euphoria have disappeared to be replaced by a long overdue sense of reality.

The catalyst was the 82 per cent plunge in net profit, to just $386,000, for the December half-year.

The group spent $34.7 million on acquisitions in the 12 months to June last year, mostly financed by share issues.

Yet it generated positive cashflow of only $180,000 in the latest six-month period.

Chairman Evan Christian admitted that the third quarter would be disappointing, but said he expected a strong recovery in the April-June quarter.

The big question is - was Mr Christian wearing his reality cap when he made this optimistic prediction?

Force Corporation


Sky City's 25c a share offer for Force is cheeky and opportunistic.

Although Grant Samuel values the shares between 22c and 32c - and says the offer is fair - shareholders should think twice before accepting the bid.

The company has problems with its Argentine operations and Queen St Entertainment Centre, but under strong and disciplined management the stock should be worth well in excess of 25c.

The best option would be for Peter Francis to sell his 50.2 per cent holding, as Sky City has the ability to improve Force's performance as a listed company.

IndraNet Technologies


You have seen the ads - they are big and they are everywhere.

IndraNet Technologies, the Christchurch technology developer, is aggressively promoting the issue of new shares at $1 each.

It looks like a good deal because the issue price compares with IndraNet's last unlisted market price of $4.20 in November.

But there is a catch. The company has since had a five for one share split, so the $1 issue price should be compared with the split adjusted price of 84c a share.

Existing shareholders have contributed $5.6 million of equity and have 190.3 million shares.

The company hopes to raise $5 million from the issue of five million shares.

New shareholders will contribute 47 per cent of group equity, yet hold only 2.6 per cent of the company's shares.

At $1 a share the company has a market value of more than $190 million, a remarkable figure for a company that has yet to earn $1 of revenue.

eVentures


What is going on at eVentures?

Where are its results for last year?

Why does a computer-literate company, with only minimal business activity, take so long to report to shareholders?

* bgaynor@xtra.co.nz