Leap Wireless International (LWIN) Message Board

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Technology Stocks : Leap Wireless International (LWIN)

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To: Jack Jackson who wrote (61)	9/25/1998 2:25:00 AM
From: Robert J. Irvin	of 2737

One opinion of value can be found at pages 46 and 47 of Leap's Information Statement. Leap's pro forma balance sheet, as explained by footnote 12, reflects an estimated fair value of $21.4 million for Leap's obligation to issue 2,271,060 shares to holders of Q's Trust Convertible Securities upon conversion into shares of Q and Leap common stock, or $9.42 per share. It is unclear whether this is management's figure, or Lehman's, or both. It must be based on a discounted cash-flow analysis, with assumptions supplied by management. If discounted at a junk bond rate of 13%, it implies a one year forward value of 10 3/4 or so. Much higher values can be inferred from page 33 of the Information Statement by comparing price to book ratios with Bell Canada International and Millicom International Cellular. More helpful would be a country by country business analysis, which is way beyond me. Any help on this score would be very interesting.

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