PTEK-more on valuation of its stake in HLTH:
Here is Rande Is's attempt at PTEK valuation from his thread:
WebMD has approximately 1,734,000 million shares outstanding
[according to recent news quoting WebMD's registration statement]
WebMD shareholders will receive 1.815 shares of Healtheon [HLTH] stock
HLTH closed at 100 dollars per share today
This means that each share of WebMD stock is now worth $181.50 per share
Premiere Technologies [PTEK] owns 12.1% of WebMD or 2.1 million shares with a market value of $381,150,000
PTEK's CEO owns 12.7% of WebMD or 2.2 million shares with a market value of $399,300,000
Together they own 24.8% of WebMD or 4.3 million shares with a combined market value of $780,450,000.
PTEK had a market cap yesterday of about $ 775,000,000. Today that number would be approximately 50 percent higher at about $1,156,150,000 or 1.156 billion dollars and putting the PTEK share value at $ 24.00 per share.
Rande Is
My only problem with this is that if you read the LAST reuters story of the day today (http://biz.yahoo.com/rf/990520/blq.html) you will see that there is confusion as to the number of shares PTEK holds--2.1 million or 2.9 million. For now it is appropriate to use the smaller number just to be conservative.
The key is that even with an appropriate discount PTEK looks way undervalued now, especially given its stake in the usanet IPO in about 2 weeks.
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