SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dragon Systems, Inc. [DRGN]
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: praguepivo who wrote (31)3/16/1999 9:06:00 AM
From: Dr. Bob  Read Replies (1) of 59
 
Here's a thought for the DRGN folks:

Perhaps one reason for the delayed IPO is LHSPF's SEC issue. DRGN's pricing for the IPO would have to be somewhat based on the valuation of other player(s) in the same sector; LHSPF is the only one available in this sector for comparison. One method of valuation would be to use LHSPF's PSR, and use that to calculate a market cap for DRGN, and then price shares accordingly. But LHSPF's share price, and therefore its PSR, is artificially depressed right now, due to the SEC investigation. Once that is over, LHSPF could rebound substantially, making its PSR higher, and thereby allowing DRGN to price its IPO much more favorably - and in turn, allow it to raise substantially more capital.

Wouldn't it be ironic, for DRGN's future opportunities to hinge so much on LHSPF's current situation! I'll bet the DRGN folks are hoping LHSPF comes out smelling pretty good - if they don't, it will be very difficult to raise much money with their own IPO.

Bob
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News