Weekly financial wrap up

Weekly financial wrap up

As companies continue to flood the ASX for listing, the pioneers are starting to reap the capital rewards. Meanwhile warnings are still being sounded about un-profitable Internet ventures.

Ocean floats Bambuu on ASX

In what is becoming an odd IT trend, another former mineral company has left the quarries in search of more lucrative streams through e-commerce and the Internet.

Ocean Resources NL has changed its trading name to Bambuu in the lead up to an IPO scheduled next month.

Hoping to raise $3 million from 20.5 million shares with 5.5 million options, the company has extended the closing date for applications to August 13 after announcing it has just agreed in principle with UK Internet company Witchity to market a software product which enable users to maintain their Internet connect while receiving incoming calls on the one phone line.

New Tel options gross $10m

Telecommunications company New Tel has pocketed $10.05 million from exercising nearly 33.5 million outstanding options, which expired on June 30.

Priced at 30 cents, the cashflow generated by the options enables New Tel to bolster its sales and marketing efforts, which according to New Tel CEO Peter Malone has doubled its customer base.

A shortfall of 226,958 options was underwritten by Findlay & Co Stockbrokers.

Two more bites for Sausage

Sausage Software is hot on the acquisition trail, buying another two companies -- ASK Solutions Victoria and Savant Data Network Services.

In a statement issued by Sausage, the company claims ASK and Savant have an annual turnover of $4 million and offer the strategic, technical and networking capabilities required by the Web developer to service the Internet and data infrastructure needs of its major corporate customers.

Sausage Software's director, Wayne Bos, claims the acquisition also further positions the company as an applications service provider.

The Heads of Agreement announcement was made this week and is subject to final contract documentation.

Web Doc warns about e-profits

Companies pouring money into unprofitable Internet businesses have reached epidemic proportions, to the point where people are surprised to find an Internet venture achieving immediate profitability, claims Web guru Dr James Hearne, owner of Web development company Hearne Web Publishing.

Claiming some companies fall into the habit of losing money, a habit Hearne compares to "smoking or drinking", the Web aficionado says "I would be very reluctant to lend money to a business that had not yet learnt the science of making a profit. Spending buckets of shareholders' money requires little discipline."

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