Excellent find. At an exchange rate of 1.600, Freeserve is being valued at $800.0 MM to $3,200.0 MM. That works out to approximately $533 to $2,133 per subscriber. If the same valuation is applied to the 350,000 XSNI subscribers, XSNI has a valuation of approximately $187.0 MM to $747.0 MM. Divide these valuations by the 34.0 MM XSNI shares that are outstanding, and you have a valuation of approximately $5.50 to $22.00 per share. The truth, as always, is probably somewhere in the middle. Note that as of Friday's close, the subscribers of ELNK and MSPG were being valued at $1,628 and $2,105 each, respectively.
I want to emphasize that the above calculation is based on the public information that is currently available to us. Some piece may be missing as I find it hard to believe that the market can be so inefficient. JMHO. |
