Mark,
>>Phoenix sold 1/3 of their Xionics shares at $12, so my question is - why can't Phoenix see the positive fundamentals? Or is Xionics overvalued?
As you probably know the shares were sold on Sept. 26, 1996 at the initial public offering price of $12 per share less 7% for underwriters' discounts and commissions. Xionics sold 2.5 million shares of common stock in the offering.
Xionics and Phoenix granted the underwriters in the offering an option to purchase an additional 375,000 and 75,000 shares, respectively, at the same initial public offering price per share. The underwriters exercised this option on Oct. 7, 1996.
Following these sales, Phoenix owned 1,380,381 shares, or 13.2%, of the outstanding Xionics common stock.
Effective Sept. 30, 1994, Phoenix sold to Xionics its PhoenixPage business unit, which developed advanced embedded software for laser printers and other peripheral devices emulating the industry-standard PostScript(R) and PCL printer languages. This stock is PTEC's remaining position in the company.
The company decided to focus on the core BIOS and PICO/Virtual Chip areas.
They have announced their intention to sell the Xionics stock. They have to wait 180 days after the offering date to sell same. Accordingly, they will be able to start sales on March 18th. This will be booked as "other income" and will NOT be from discontinued operations. I suspect that some of this income will be in the current quarter.
1,380,381 shares X 19 1/2 = $26,917,429.50 - Tax 32% = $18,303,852.06 or $1.00 per share to the bottome line.
Of course if Xionics rises in price any more this number will increase. (They did beat the street estimates last quarter) They plan to sell the stock over a number of quarters. In other words the "estimates" of .80 to .82 per share for this stock in 97 will be exceeded. This is in line with the companies business plan.
They also sold SoftBank a few years ago and have a substantial position in that company as well.
Marc |
