By FIONA ROTHERHAM
Technology company Advantage Group has again been queried about the sharp surge in its share price, the fifth time the Stock Exchange's market surveillance panel has posed the question since late 1998.
Advantage's share price leapt 80c to $4.80 from February 25 to February 29, when the panel made its latest inquiry.
Showing the same volatility as offshore internet stocks, Advantage's share price went to a high of $4.97 yesterday, but closed at $4.60.
Today's expected release of its half-year result is unlikely to contain any surprises on the company's November forecast of a $3.1 million profit, after tax and before goodwill, on revenues of $29.6 million. That compares with the last full year's $3.41 million profit on revenues of $21.2 million.
Advantage told the panel it had no explanation for the sudden share price rise. The inquiry ends there, unless other information comes to light.
"It puts them on the record. If you don't ask and found out something later you should have known about, it is harder to nail them down," said surveillance panel secretary Philippe Leloir.
The panel's first "please explain" notice came in September 1998, when Advantage's share price rose from 20c to 32c in one day. Entrepreneur Eric Watson soon after emerged with an 11.8 per cent stake in the company, later increased to 15.4 per cent.
Mr Watson, chairman Evan Christian and director Nick Gordon, now hold 45 per cent of Advantage through another company, ePac.
Price spikes upwards and downwards are common with IT stocks as the shares are often locked under the control of the company founders and institutions, unlike stocks like Telecom and FCL where the spread is wider.
Exchange asks Advantage to please explain - again
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