I have to tell you that I am still reeling from your accusation that I am a "value investor." LOL. I have checked out and purchased PRWW. While MEAS may do well, IMHO, this is the way to back door AmerciasDoctor.com. Thank you for the recommendation. I have already posted the following analysis on two threads, the PRWW thread and the "back door" thread.
Message 10605049
Message 10604999
Now that AmericasDoctor.com has filed its S-1, it looks as if PRWW is in line for an impressive return on their $1.0 MM investment. As of May 12, 1999, PRWW had 7,114,720 shares outstanding. As of March 31, 1999, cash and short-term investments totaled $14.837 MM, or $2.09 per share. Book value was $4.41 per share. During the first quarter, the company earned $.06 per share.
The initial filing of the AmericasDoctor.com S-1 does not price the deal but it might be useful to run some assumptions using KOOP as a comparative. When KOOP went public, it sold, including the over-allotment option, 10,781,250 shares, or approximately 37.3% of the company. There are currently 28,920,841 shares outstanding. Yahoo shows only 27.5 MM but that number does not include the over-allotment shares. The IPO came out at $9 per share, the stock eventually spiked to 45 3/4 and now sits at 33 3/8. A triple plus.
AmerciasDoctor.com is looking to raise $60.0 MM. Given that this sector is hotter than when KOOP went public, let us assume that the $60.0 MM buys 30% of the company. That gives the company a pre-offering value of $200.0 MM.
PRWW's pre-IPO interest in AmericasDoctor.com is 7.3%. Assuming that 30% of the company is sold off, PRWW will retain a post-IPO interest of 5.11%. If we assume that AmericasDoctor.com doubles from its offering price, MEAS' 10.15% would have a gross value of $20.44 MM ($400.0 MM times 5.11%). Discount the $20.44 MM by 40% to reflect tax and liquidity issues, and you are left with $12.264 MM, or $1.72 per share ($12.264 MM divided by 7,114,720 shares).
Wednesday's closing price for PRWW was $6.50 per share. Deduct the $2.09 per share of cash and the estimated valuation for AmericasDoctor.com of $1.72 per share, and the remainder of PRWW is being valued at $2.69 per share. Very undervalued IMHO.
Many thanks to Jeff Litwin for bringing PRWW to my attention.
The AmericasDoctor.com S-1 can be found at:
sec.gov. |
