could this be a bargin based on cash holding?

  1. 635 Posts.
    ESTAR (EST) started its corporate life as an internet broker.
    With the downturn in the investment market the board made the decision not to continue in that line of business before all the money was burned up.
    Currently EST is sitting on approx. $10mil. in idle cash.
    No long term creditors, no loan commitments.
    Cash holding is equal to ~10c per share.
    The stock is currently trading ~5c.

    HOMEX - Sydney
    The Directors of eStar Online Trading Limited ("eStar") announce that the Heads of Agreement ("HOA") entered into with Gladstone Development Pty Ltd on 22 January 2003, to purchase all the shares in Development Support Services Pty Ltd ("DSS") has been cancelled due to proposed changes to the terms and conditions in the HOA.

    The Directors believe however that the proposed investment in DSS still provides an excellent opportunity for eStar in the medium to long term given DSS's commercial relationship with the Aldoga Alurninium Smelter project in Gladstone, Queensland.

    The Directors have entered into a new HOA on revised terms and conditions. A copy of the new HOA is attached.

    Completion of this HOA is subject to satisfactory due diligence that is currently underway and to ASX and shareholder approval. It is anticipated that a General Meeting of the company will be called within the next 3 months.

    A copy of the Heads of Agreement is available in PDF format on Alternatively it is available for purchase from ASX Customer Service on 1 300 300 279.
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