A Lot of Dot-com Deaths During 2000
At least 210 dot-coms closed up shop last year, according to a report by WebMergers, with 60 percent of the closings occurring during the year's final quarter. Many were able to hang on so long thanks to a March stock market rally that kept them solvent longer. Of the 40 or more companies to fold in December, at least a quarter are hoping to sell off their assets or reorganize through bankruptcy filings or some other means.
Before their December closing, the companies had received at least $1.5 billion in investment funds from venture capitalists and other private and public investors. More than half of these companies were e-commerce companies, 30 percent were content properties and the remaining ones were infrastructure and online services companies. WebMerger's Year 2000 Dot Com Shutdowns report is available at www.webmergers.com.
Gloom and Doom Forecast for 2001
A recent article in The Standard paints a gloomy picture by suggesting that companies are dropping like flies off the NASDAQ (as many as 5 percent of companies currently listed are slated for delisting, the article claims.) Nearly 260 companies have fallen below NASDAQ standards during the last six weeks, with even more ready to trip below the listings' minimum requirements, the article added.
Online Investing Sites Suffer as Economy Cools
A new Internet Satisfaction Monitor report from cPulse shows that consumer investors are becoming less satisfied with financial and investment sites as the economy slows down. Customer loyalty to investing in content-based sites has dropped steadily since last summer, and even the customers who remain loyal to a particular site reported less satisfaction with their favorite investing sites. "It appears that swings in the market over the last three quarters have caused consumers to be even hungrier for up-to-date, fact-rich
research that could help guide their financial decision making," a cPulse analyst said. "We noticed that as the market worsened, consumers became increasingly critical of the sites they relied upon for financial support." Another spokesperson added, "Apparently consumers were demanding more and more of their financial sites and they became more than just a place to check stock quotes and make purchases. Those sites not keeping up with consumer demands by providing rich research and up to the minute advice and
content received poor scores from consumer investors." The analysts suggest that online investing sites can improve by making three changes: offer as much historical content online as is available offline; offer more
analyst-level perspective including FAQs, comprehensive performance analysis and news coverage; and offer tutorial resources that teach investors how to use the information that is provided.
New UK Regs Allow Companies to Communicate Electronically
Thanks to changes made to the 1985 U.K. Companies Act, shareholders can now receive information about the companies they've invested in via e-mail and other electronic means. The rules, which went in effect late last month, allow companies, with the shareholder's permission, to send financial information, annual reports and other information electronically and also receive shareholders proxy information and voting instructions in the same manner. The complete "Companies Act 1985 (Electronic Communications) Order
2000" can be read online at http://www.legislation.hmso.gov.uk/si/si2000/20003373.htm.
e-corp Flounders Despite Tech Rally
Shares of Kerry Packer's e-corp (ECP) sold for AU$1.14, which has been in steady decline since its $8.60 high in March 2000. Last week alone the share price fell 21 percent, falling below its $1.20 issue price. One Internet analyst told The Sydney Morning Herald, "People are starting to look for profitability in these companies and sustained earnings growth. They are no longer willing to pay for stocks that aren't profitable and that goes for ecorp." The company lost $28.27 million for 1999-2000. Another analyst suggested that e-corp's stock "is definitely not worth what it is trading at now."
Canbet Turnover up 4.3 Times Previous Year
An astonishing 89 percent of Canbet's $29.1 million in turnover for December 2000 came from North American bettors' pockets, according to recently released figures. The turnover was 427 percent greater than that reported for December 1999. Canbet also brought in $138.9 million during the last half of the year, at least $100 million greater than same time last year. Calling the U.S. "virgin territory" for the company, Canbet chairman Richard Farmer told The Age, "Bookmaking is illegal in the U.S., except for in Las Vegas, and given more than U.S.$80 billion is wagered illegally there every year, people would prefer to bet with us than the Mob."
IG Profits Soar for First Half of Year
With its non-betting profits growing nicely, IG Group Plc (IGI) reported a doubling of profits for the first six months. Net income for the period ending November 30 topped £5 million, compared to £2.77 million reported same time last year. Despite the good news, today's share price fell 2.8 percent, selling at 494.5 pence.
Gala Eyes Ladbrokes' Net Betting Arm
After dropping £235 million for Hilton Group Plc's (HGI) casino chain, bingo chain Gala is reportedly eyeing its bookmaking and Net betting divisions, which could sell for as much as £1.5 billion. Fueling the rumor: Gala recently hired former Allied Leisure CEO and Ladbrokes staffer Neil Gourden. Today's trading dipped slightly with share's ending the day at 220.628 pence, after closing Friday at 223.50 pence.