It found just nine were cash flow positive of the 45 companies included in the report. The report, combined with yet another slide on Nasdaq overnight, led to another drubbing for local tech stocks yesterday, with 43 companies registering falls of more than 5 per cent. Since hitting a high in March of 5048.62, the technology-laden Nasdaq index is off more than 25 per cent, closing on Tuesday night down 172.63 at 3785.45. The correction on the local technology market has significantly reduced the ability of many to raise additional capital on the stockmarket, as investors become less willing to put money into a downtrending market.
All face running out of cash in nine months, the report says.
Yet the worldwide slide in technology stocks has failed to sour some dot-com entrepreneurs' enthusiasm for capital raisings, with a host of floats being queued up for listing. Most new companies will be attempting to get to the market before the Sydney Olympics. A number of floats thought to have been shelved by the tech market shake-out, including Seven Network's mobile phone offshoot B Digital and outsourcing group UCMS, are understood to be proceeding, albeit at a discount to the original prices. Privacy Policy Copyright 2000. The Sydney Morning Herald.