AmerciasDoctor.com (AMDR) has filed its amended S-1 and they have announced that they are selling 7.25 MM shares at a range of $8-10 per share. They are looking to raise $60.0 MM and they will have 24.93 MM shares outstanding after the offering. The $60.0 MM buys 29.08% of the company. If we assume that the deal is priced at $8, which is probably unlikely given the excitement surrounding this segment, the company is being valued, pre-IPO, at $200.0 MM.
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. For the first six months of the year, the company earned $.13 per share. Revenues for the six month period were up 38.2% to $20.517 MM.
PRWW's pre-IPO interest in AMDR is 7.3%. Assuming that 29.08% of the company is sold off, PRWW will retain a post-IPO interest of 5.18%. If we assume that AMDR doubles from its offering price, PRWW's 5.18% would have a gross value of $20.72 MM ($400.0 MM times 5.18%). Discount the $20.72 MM by 40% to reflect tax and liquidity issues, and you are left with $12.432 MM, or $1.75 per share ($12.432 MM divided by 7,114,720 shares).
Tuesday's closing price for PRWW was $6.25 per share. Deduct the $2.09 per share of cash and the estimated valuation for AmericasDoctor.com of $1.75 per share, and the remainder of PRWW is being valued at $2.41 per share. Very undervalued IMHO.
Also note that KOOP, which is a direct competitor of AMDR, was priced at $9 per share, spiked to $45 and currently sits at $25 5/16.
The March 31, 1999 Form 10-Q for PRWW can be found at:
sec.gov
The initial AmericasDoctor.com S-1 can be found at:
sec.gov. |
