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View Full Version : Anomaly? at Ezenet (EZE)



tommy
10-10-2006, 03:30 PM
Ezenet Limited (EZE) is engaged in the provision of digital movie services to the hospitality, health care and mining industries in Australia and New Zealand.

The Company's two movie systems are Choice 24/7 and On Demand. Choice 24/7 is a radio frequency (RF) coaxial cable interactive pay movie system suited to 3-4 stars mid to larger sized properties.
The On Demand product is a pay movie and Internet system suited to the small, medium and large four and five star hotel markets. On Demand uses more common communications networks rather than traditional coaxial cable, offers digital video on demand and high-speed laptop connect Internet. The Company supplies its entertainment and information system to mining camps in Western Australia and Queensland. In April 2005, it agreed to transfer all of its interest in the Zambia mining properties to Puku Minerals Limited of Zambia.

http://www.ezenet.com.au

For more info, read:

Ezestream acquires Guest Video #8211; adds 3950 rooms, Total Installed Rooms: 19,994
http://sa.iguana2.com/cache/378fb53e5bb47853237262a77507aef0/ASX-EZE-335164.pdf

Ezestream Signs Movie System Deals with Eight Hotels, Hospitals and
Mining Camps, Total Installed Rooms: 16,044
http://sa.iguana2.com/cache/8aedadd5dab63f75417f3bb407a8a00e/ASX-EZE-331191.pdf

Preliminary Final Report
http://sa.iguana2.com/cache/696a5630dbbcb6adfd94445037e3a8fe/ASX-EZE-334286.pdf

Annual Report
http://sa.iguana2.com/cache/581ce2da9a44ca6d0c541655899d8538/ASX-EZE-335997.pdf

Placement to Matterhorn Investments
http://sa.iguana2.com/cache/e80a960f30ad0dcb87ccedd5aeec065e/ASX-EZE-330716.pdf

___________

Okay, that's what EZE does, but that's not what I'm interested in here.

The key is that EZE currently has a market cap of 10 million, trading at 15c, with PE of 7.

But according to the above annual report page 8, EZE holds 18.28 million shares of Weatherly International (listed in London AIM: see http://www.weatherlyplc.com/) which currently trades at 21pence (http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB00B15PVN63GBGBXAIM%20B15P VN6WTI)

This means its holdings of Weatherly alone is worth AUD$9.62 million.... What da[?]

So is the company valued at almost zero at the moment? Someone tell me if I am missing something here, because this just sounds too good to be true.

What's da catch?!

ead83
10-10-2006, 04:09 PM
There is no catch!!
Weatherly International is a copper exploration company that struck it in Namibia and Zambia. Ezenet's holding of shares in Weatherly will be worth a lot more in a year when the mines start coming into production. At current worth circa $10 million, which means you're getting the Ezenet business for nothing! :)

tommy
10-10-2006, 04:19 PM
hi ead83,

Well, i know jack-all about Weatherly so cannot determine what the company is actually worth compared to its current share price.

Must dig into this a bit deeper, might have struck a low-risk, high-return play here. Might also be a good takeover target due to its digital movie services.

ead83
10-10-2006, 05:25 PM
Hi tommy,
I've been looking at EZE for a little while now. It's worth doing your research on their Weatherly holdings and getting a better idea of the overall picture. I say it's worth having a punt if you've got some spare change lying around :)
I don't hold (yet) as currently have got my money on some bargin oilers