re: atc looking good re announcement Hi Laurra, Grant / OthersI...

re: atc looking good re announcement Hi Laurra, Grant / Others

I can understand the negative ATC sentiment when we have a share price of 13c and no-one is buying. To answer Grants' questions we must READ the ANNOUNCEMENT regarding the company update made on 28/11/02 VERY CAREFULLY.

Para 4 of that announcement informs the market that their revenues are still increasing. This tells us that they need less cash from placements / debt raising than they initially might have thought. This also tells us that the business is growing despite management focus on FNT. Here we can expect revenues to keep increasing (excl FNT) given the additional contracts being switched and China rate increases.

Para 5 - ATC is now EBITDA positive. Without FNT in the equation, the company is covering its costs and expects to post a profit for the full month of Dec 02. With increasing revenues, profits will improve. With FNT, profits will be phenomenol. (estimated around 9 to 11c EPS after dilution).

Para 6 - New Board admissions. ATC is looking to admit more people on the board. We can expect, more experience, more exposure, and more global attention.

Para 7 - More acquisitions. Post FNT, the company is still looking to acquire more cash flow positive businesses that it can vertically integrate into the group structure. This vertical integration allows target company cost of sales to effectively add to ATC revenue base. This is what makes FNT so special. Sounds wierd, but we are buying businesses in order to acquire their COSTS.

Para 8 - The FNT acquisition is being completed. Its done.

Para 9 - Capital raising. The FNT acquisition can either be paid for by raising capital, or paid from earnings post completion. This tells us that the FNT deal is not contingent on raising capital as vendor finance is available.

Para 11 - ATC is expecting to announce the research and review reports on operations. This is the platform for ROADSHOWS and ultimate rerating of ATC.

Para 12 - The FNT deal is NOT contingent on raising capital. FNT will be completed irrespective.

Para 13 - The short term capital raising being considered is needed to switch FNT sooner rather than over several months. Any short term capital raising will be good for profit as ATC can switch the FNT traffic immediately rather than progressively. This means immediate cash flow and profits.

Para 16 - Eastern Seaboard Office. This is ESSENTIAL. Whilst ATC has global presence, Grant is correct to say that the company has nothing to do in OZ besides its listing. That reason ALONE is the reason why we need an office in Sydney or Melb. ATC is an OZ company which most of us invested in because of its global exposure. This is good for ATC and sets the platform for continued growth, communication and shareholder involvement in meetings. WHO WENT TO PERTH yesterday????


I have thought long and hard before acquiring more to average down my cost. In deciding, I have considered the following probability -:

The company will make more profit as a result of the growth it is experiencing. ATC is less than 1 year onld. Already it has established itself in the global marketplace, taken on serious board members, bought FNT and making profit. This is unique and will attract attention.

The Board is now predominantly global telco based and the Nugold days appear over. More Board appointments and the office on the eastern seaboard will help us FORGET Nugold.

Valuation. If the company makes the profit it is estimating, then the share price is seriously undervalued.

Cash. Making profit and acquiring cash flow generating businesses, usually leads to being cash flow positive overall. This leads to money in the bank.

Overall ATC has not changed its core business. The business is STRONGER now than when the share price went into the 50s.

I know many people who have paid 35c ++ for their ATC stock not so long ago. I do believe these people will be able to sell at a profit, even if they dont average down.

The share price has fallen so far because no-one is buying. The volume has been very small. This tells me that the stock will improve on small turnover as well when the charts start looking better and SENTIMENT improves.

I too have questioned why the Board has not bought more at these ridiculous levels. Perhaps with all this growth and development looming, they are simply not allowed to buy. YET.....

My thoughts only.