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InvestSMART.com.au - Newsletter
InvestSMART Financial Services Pty Ltd
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InvestSMART Newsletter - 7th October 2003

Health/Biotech Float/IPO
After announcing our involvement with Montec International last week, we have had dozens of calls and hundreds of prospectuses downloaded/requested. As we mentioned last Thursday this float may be oversubscribed very quickly. With our clients rushing into this float we would expect it could reach minimum subscriptions some time this week.

We put up our hands up pretty quickly when offered the chance to distribute and promote this new biotech/health float. Why? Montec International is a health/biotech company with proven technology (it's been used for the past 10 years in the manufacturing of Farmers Best* milk in NSW) and has the potential of joint venturing with one of China's largest milk manufacturers.

Peter Switzer, today wrote in The Australian (page 21), "Forecasts have suggested that milk consumption in China between 2001 and 2015 would double to 18 billion litres a year", the article went on further to state "Montec secured agreements with the Ministry of Agriculture in China and the key distributors of milk in the major urban centres of Beijing, Shanghai, Qingdao and others. Urban milk consumption accounts for 90 per cent of the total spend on milk in China".

The potential of Montec International Limited lies with its rights to the unique healthy dairy formula, the relationships that Montec has established with the Chinese Government along with dairy processors in certain countries in the Asia Pacific Region and the need for consumers to address cardiovascular disease.

Click here to download a prospectus. The application at the back of the prospectus can be used to apply for shares. Simply go to File > Print within Adobe Acrobat Reader and choose the page numbers you wish to print. You do not have to print the entire document.

InvestSMART believes this issue will close early. You will need to read the prospectus carefully and if you wish to invest send your completed application and money in ASAP. More information on this exciting offer below.

OM-IP Seminars
Learn more about the OM-IP funds. Why they are so popular? Why Series 9 OM-IP 220 Limited fund was oversubscribed by more than $60M and successfully raised $300,000,000 and closed early? Why, even in the past bear market these funds were still able to record a 22.8% on average increase between the 12 months to 30 June 2003?

Register your interest now by clicking here and completing the form.

InvestSMART invites you to participate in the 15th Australian Online Survey!
All survey participants will go in the draw to win one of over 150 prizes, including a holiday for two to Pacific Resort Rarotonga Cook Islands, Rebel Sports vouchers and Hoyts Double Movie vouchers to name a few.

Simply answer all relevant questions and you'll go in the draw to WIN. Please click here to complete this survey online.

Regards
The InvestSMART Team

Offer Overview

MONTEC INTERNATIONAL LIMITED
Opportunity Biotech company positioned to move into China
Opening Date 7th October 2003
Closing Date 7th November 2003
Expected ASX Listing 19th November 2003
Issue Price 50 cents
Minimum Investment $2000 then multiples of $500
Amount Sought $10,000,000
Market Cap at Issue Price $27,149,922
  Download a copy of the Prospectus/PDS  Download

For further information please contact:
InvestSMART Financial Services - Ron Hodge on 1300 880 160





House Keeping

Series 9 OM-IP 220 Limited is now closed. The issue was oversubscribed with total subscriptions in excess of A$300,000,000.

Shares for Series 9 OM-IP 220 Limited will be allotted on 1st October 2003. Confirmation of allotment and interest on early applications will be sent to shareholders shortly following 1st October 2003.

InvestSMART will receive final notification of those clients who invested through InvestSMART into Series 9 OM-IP 220 Limited by the middle of October. Platinum Membership entitlements will be emailed out to eligible clients soon after, along with password and login necessary to access the Platinum areas of the site.




Company In Focus


BIOTECH COMPANY POSITIONED TO MOVE INTO CHINA

The potential of Montec International Limited lies with its rights to the unique healthy dairy formula, the relationships that Montec has established with the Chinese Government as well as dairy processors in certain countries in the Asia Pacific Region and the need for consumers to address cardiovascular disease.

AFI Management Pty Limited (AFI) currently owns the formula and patents for combining mono-unsaturated fats with dairy products. Montec has rights to commercialise the formula within the Asia Pacific Region (through and subject to the rights of licensees in some countries) and to acquire outright ownership of the formula within the Asia Pacific Region.

Clinical evidence demonstrates that consumption of mono-unsaturated fats reduce the risk of heart disease through the collection and carriage of fatty lipids out of the bloodstream. The patented Mono-Premix formula enables fat free skim milk to be combined with mono-unsaturated fat to produce dairy foods that are low in cholesterol, contain calcium and have a taste and consistency which is creamier than that of ordinary skim milk.


Since its commercialisation in 1992, the patented mono-unsaturated dairy formula has been used for over 10 years in New South Wales in the production of Farmers Best* milk by one of Australia's largest dairy processors, Australian Co-operative Foods Limited.

Montec presents an investment opportunity in a dynamic and expanding sector of international dairy food markets. Irrespective of economic pressures and global events, dairy products remain a daily purchasing decision in most households as they are regarded as important to sound bodily development and growth.

Exciting Opportunities
In or around December 2003, Montec plans to launch Montec's own brands in China via Qingdao Dairy General Corporation, which is a subsidiary of the New Hope Group, one of China's largest private companies. Montec has also received expressions of interest from other dominant dairy processors in China and holds a letter of intent from Beijing Sanyuan Foods, which has acquired substantial ownership of Kraft Foods in China, 50% of McDonalds Beijing and in 2001 held 90% share of the Beijing milk market.

Operations are scheduled to commence in New Zealand in March 2004 via contractual arrangements held with Monocorp NZ Limited. Montec also intends to exploit opportunities in Thailand and Taiwan and has held discussions to further these endeavours.

Montec plans to launch product extensions such as yoghurts and ice creams in target markets and to expand its markets to include non-grocery distribution channels, such as fast food chains, vending machines and pharmacies.

Management and Investors interests are aligned
In achieving its objectives, the Board is determined to maintain best practice corporate governance standards so as to develop a prosperous long-term relationship with Montec's stakeholders. In order to closely align the interests of the founder with public shareholders, all of the founder's Shares will be held in escrow for 24 months, two-thirds will be held in voluntary escrow for 36 months and one-third will be held in voluntary escrow for 48 months.

  Download a copy of the Prospectus/PDS  Download

If you'd like a copy of the Montec Prospectus/PDS emailed to you immediately please enter your email address below and click on "Email me a Prospectus"...

For further information please contact:
InvestSMART Financial Services - Ron Hodge on 1300 880 160

* Farmers Best is the registered trademark of Australian Co-operative Foods Limited




The offer of securities by Montec International Limited will be made in, or accompanied by, a copy of the Prospectus in paper or electronic form. Anyone wishing to acquire securities in Montec International Limited will need to complete the application form that will be in, or accompany, the Prospectus. A Prospectus will not be supplied to anyone outside Australia. InvestSMART makes no recommendations as to the merits of any investment opportunity referred to on this website. Before making any investment decision on the basis of any reports or information provided you must read the disclosure document and make your own investigations regarding the accuracy, reliability and completeness of this information.




Broker Consensus
Company Brokers
Surveyed
Consensus
Recommendation
*
  MCGUIGAN SIMEON WINES LTD (MGW)   7 Strong Buy
  INVESTOR GROUP LIMITED (IGP)   3 Strong Buy
  VALAD PROPERTY GROUP (VPG)   3 Strong Buy
* Recommendations as at 26th Sep 2003. Data compiled and supplied by Thomson Financial First Call. more...



Upcoming Floats


Upcoming Float

Company Name: Montec Interational Limited  
Expected Offer Open: 7th Oct 2003
Expected Offer Close: 7th Nov 2003
Expected Float Date: 19th Nov 2003
Issue Price: $0.50
Notes:

AFI Management Pty Limited (AFI) currently owns the formula and patents for combining mono-unsaturated fats with dairy products. Montec has rights to commercialise the formula within the Asia Pacific Region (through and subject to the rights of licensees in some countries) and to acquire outright ownership of the formula within the Asia Pacific Region.

The potential of Montec lies with its rights to the unique healthy dairy formula, the relationships that Montec has established with the Chinese Government as well as dairy processors in certain countries in the Asia Pacific Region and the need for consumers to address cardiovascular disease.




Stock Watch
Company Comment Dividend
(per share)
Franking Ex-Dividend
Date
Payment
Date
  TASMANIAN PERPETUAL TRUSTEES LIMITED (TPX) 2003 Final Year Result 27.5 ¢ 100% 8th Oct 2003 31st Oct 2003
  SOUTHERN CROSS FLIERS TRUST (SCF) 2004 First Quarter Result 218.77 ¢ 0% 8th Oct 2003 21st Oct 2003
  OAKTON LIMITED (OKN) 2003 Final Year Result 3 ¢ 100% 9th Oct 2003 27th Oct 2003
  RIDLEY CORPORATION LIMITED (RIC) 2003 Final Year Result 3.25 ¢ 100% 9th Oct 2003 29th Oct 2003
  SOUTHERN CROSS BROADCASTING (AUSTRALIA) LIMITED (SBC) August 2003 Final Year Result 27 ¢ 100% 9th Oct 2003 24th Oct 2003
  more...



CashBack


"stop being ripped off"

InvestSMART already rebates 100% of entry and exit fees on most managed funds in Australia. Our CashBack Program now goes one step further and effectively entitles Platinum Members to a cash amount per annum equivalent to 80% of the trailing commission paid to InvestSMART from participating fund managers as a result of a member's investment.

A Member's yearly CashBack is based on the value of managed fund investments they hold with participating fund managers during that year, with InvestSMART nominated as the Fund Dealer. This cash payment effectively reduces a Member's management fees on those managed funds by up to 30%. Funds invested and ultimately a Member's CashBack amount may change due to the performance of funds, ongoing contributions and/or redemptions.

It's easy to nominate InvestSMART as your fund dealer for your existing managed funds. You simply need to fill in the following one page form:- Fund Dealer Nomination Form. STOP PAYING UNNECESSARY FEES AND ACT TODAY!

To find out more about InvestSMART's CashBack Program and how to stop paying unnecessary management fees CLICK HERE



Table 1 : Entry Fee and Trail Commission combined savings over 10 years

Ongoing Monthly Contributions ($)
Initial Investment ($) 0 100 200 500 1000
5,000 692 1,458 2,224 4,522 8,352
10,000 1,384 2,150 2,916 5,214 9,044
25,000 3,460 4,226 4,992 7,291 11,121
50,000 6,921 7,687 8,453 10,751 14,581
100,000 13,842 14,608 15,374 17,672 21,502
200,000 27,684 28,450 29,216 31,514 35,344
400,000 55,367 56,133 56,899 59,197 63,027
NB: An approximate calculation based on 4% entry fee, 0.4% trail commission, 10 year investment period and 7% pa return on investment

Table 2 : Entry Fee savings over 10 years

Ongoing Monthly Contributions ($)
Initial Investment ($) 0 100 200 500 1000
5,000 402 1,098 1,795 3,884 7,366
10,000 804 1,500 2,197 4,286 7,768
25,000 2,010 2,706 3,402 5,492 8,973
50,000 4,019 4,716 5,412 7,501 10,983
100,000 8,039 8,735 9,431 11,521 15,002
200,000 16,077 16,774 17,470 19,559 23,041
400,000 32,155 32,851 33,547 35,636 39,118
NB: An approximate calculation based on 4% entry fee, 0.4% trail commission, 10 year investment period and 7% pa return on investment

Table 3 : Trailing Commission savings over 10 years

Ongoing Monthly Contributions ($)
Initial Investment ($) 0 100 200 500 1000
5,000 290 360 429 638 987
10,000 580 650 720 929 1,277
25,000 1,451 1,520 1,590 1,799 2,147
50,000 2,902 2,971 3,041 3,250 3,598
100,000 5,803 5,873 5,942 6,151 6,500
200,000 11,606 11,676 11,746 11,954 12,303
400,000 23,213 23,282 23,352 23,561 23,909
NB: An approximate calculation based on 4% entry fee, 0.4% trail commission, 10 year investment period and 7% pa return on investment






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IMPORTANT : This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. InvestSMART Financial Services Pty Ltd makes no recommendations as to the merits of any investment opportunity referred to in its emails or its related websites.