I think these two quotes would worry me if I was a Melb IT shareholder
and trying to make a decent return on investment.

1)
"The Melbourne IT chief executive, who was appointed last November, said
the market basically valued the company at its cash balance of $14.7
million.

"The market price of the company is about 31�, 32� which basically
values the company at cash. It doesn't put any value on the total [2.1
million] names under management," he said."


2)
"Mr Hnarakis would not confirm what the company's domestic market share
in domain names had fallen to - saying the company had changed its
reporting structure. He did confirm it had lost "a lot of market
share"."



I also saw another report stating that analysts were wary of Melbourne
IT due to them not having provided any adequate forecast of future
earnings.


Cheers,

Glenn.


-----Original Message-----
From: Anthony Dever [mailto:anthony§billiousness.com] 
Sent: Tuesday, 11 March 2003 9:35 PM
To: dns§lists.auda.org.au
Subject: Re: [DNS] MelbIT lose $5M + Aussie ICANN CEO?

Although I'm not a supporter of them it's a very obvious statement that
Melb
IT would have had a decrease in revenue with the introduction of the new
.au
domain space. But as far as I read in that article and in anouncements
of
the preliminary final report at the asx the loss was actually attributed
to
accounting write downs of investments and not due to operational issues
such
as large losses in revenue or large increases in costs. In fact revue
was
only down by $4 million (7%) on the previous period and they would have
posted a profit of $2.005 million if they didn't write $7 million of the
NeuLevel investment.