Story from Briefing.com
The recent move in the stock of PQT may be due to the following story:
HyperFeed Technologies (PQT) 7 7/8 +13/16: Hyperfeed shares
have been electric this week, rallying 68% over the past
four trading sessions. Traders positioning themselves in the
stock ahead of the market debut of Quote.com(PCQT),
HyperFeed's Internet-based financial data unit, which is
expected to go out early next month... PCQuote.com is
planning to offer 7.75 million shares at between $12 and $14
a piece. One of the more interesting elements of this deal
is parent company HyperFeed Technologies' plan to liquidate
a portion of its holdings at the IPO price, instead of
waiting the 180 days normally required by underwriters
before "insiders" are allowed to sell. Should PCQuote.com
price at the high end of the estimated range (which is not
likely), the 1.95 mln share position HyperFeed is planning
to sell would have a value of $27 mln. The remainder of
HyperFeed's stake, 7.85 mln shares or 49.9% of the company,
would carry a value of approx. $110 mln (again, this is
assuming the IPO priced at $14). As of this afternoon,
HyperFeed's total market capitalization was just $117 mln.
Of course, when attempting to determine the true value of
HyperFeed's stake, one must take into account taxes, price
volatility and the likelihood that PCQuote.com shares may be
illiquid after a few months (i.e. daily volume of less than
150,000 shares). Excluding these factors, company's 9.75 mln
share stake carries a value of $9.20 per PQT share (again,
assuming a $14 IPO price). -DS
pcyhuang
huangcapital.com |
