r pratt buys into people telecom, page-7

re: r pratt (tvn) Hi Junky,

Interesting article, including the mention of Pratt and Thorney Investments being involved in PEO.

Sometimes though, following the "big" money does not automatically translate to success.

In the case of TVSN (ASX:TVN), Thorney Investments took a 10% stake in TVN in March 2004 (15.0m shares @35c each), for an overall investment stake of $5.25m.

On Wednesday, prior to trading being suspended, TVN was trading @9c (ie: Thorney's investment was now $1.35m, down ~$4.0m in 7 months).

On Wednesday evening, Administrators were appointed to TVN, followed by KordaMentha being appointed as Receivers, yesterday.

The likely outcome is $nil return to shares, and in the case of Thorney Investments, a loss of $5.25m in approximately 7 months.

The lesson out of all this is that "big" money can just as easily make the same mistake as the rest of us. The appearance of "big" money on a share register is no guarantee of future success.

The cautionary tale here is that PEO may well be different (very likely, will be much different). But no-one should ever invest solely on the strength of a Packer, or a Pratt, or anybody else (for that matter) being there. They should invest because they have researched the company, understood its potential, and arrived at an appropriate investment decision.

In the case of PEOI, they have promised much. The question now is what they will report on in the coming months. That's the more important key to PEO getting its share price back up.