iCar Asia soars

Internet auto sales operator iCar Asia can't explain its recent strong share price rises

The hype really has gathered momentum around internet Carsales wannabe, iCar Asia (ICQ).

Its share price has soared in recent months, ever since Carsales bought a substantial stake in the fledgling operator in March at 37c a share.

This morning, the company was at odds to explain a recent hike in its share price to 92c on vastly increased turnover.

In response to a query from the ASX, the fledgling internet operator with automotive sales websites in Thailand, Malaysia and Indonesia, delivered the standard Sergeant Schultz line: I know nothing.

The Carsales investment, along with a board seat, has largely driven sentiment. But the company has a long way to go before it can begin to emulate the Australian operator's performance.

While it has dramatically lifted its market share, iCar Asia's expansion has come at a cost and its losses have blown out considerably.

In the June half, it notched up a $2.77 million deficit, well up from a $180,740 loss in the previous corresponding period.

The stock this morning was trading at 85c and despite its financial performance, is likely to continue to generate interest so long as Carsales maintains its association with the newcomer (see Cliona O'Dowd's Collected Wisdom).