Download Netainment valuations 090103

TO
:
Myburgh Commission
DATED
:
6 January 2004
SUPPLEMENTARY REPORT FROM COLLETT AND ADAM
1.
NETAINMENT – VALUATIONS
1.1
In our report dated June 2003, paragraph 11.21.2, we
incorrectly noted that the NASDAQ only peaked in October
2000. That is incorrect. As shown on Attachments “AA” &
“AB” hereto, both the AIM and NASDAQ stock market indexes
peaked in around February/March 2000, and were already
substantially down from that peak in August/September 2000.
1.2
However, what these graphs do reflect is that the Corpcapitalvalues for Netainment clearly contradicted the trend in the
NASDAQ and AIM market indexes.
These stock market
indexes primarily reflect the average stock prices for listed IT
and related companies. Some On-Line Casino’s were also
listed in these exchanges. The stock market indexes also
reflect the market’s assessment of future economic prospects
of its participants, and the economy in general. The NASDAQ
and AIM indexes reflected a somewhat cautious and relatively
negative view on the future economic prospects from around
March/April 2000 until September 2002.
Corpcapital,
however, had a rather more optimistic approach, as reflected
in their valuations.
1.3
The yellow-bar on the graphs reflects those values if
Netainment’s-values would have followed the NASDAQ and
AIM indexes, and using the September 2000 valuation as a
base.
1.4
In our opinion the above stock market indexes are by no
means the principle indicators by which Corpcapital’s values
for Netainment should be judged. Netainment was not listed.
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The attached graphs merely illustrate the differences between
Corpcapital’s and/or market’s expectation/mood insofar as
any market trends or indexes may have played a role in
determining the values for Netainment.
_____________________________
BASHIER ADAM
for SAB & T
_____________________________
D E COLLETT
for Collett & Collett Ass. (Pty) Ltd
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