Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: voop who wrote (5717)	8/31/1999 10:35:00 PM
From: Teflon	Read Replies (1) of 54805

Voop, I was a little confused by your question: Teflon, educate me on how basis of SFE drops with I{PO distributions. I neglected to participate with the other offering US Intreractive If I read you correctly, I assume your asking how SFE is effected by distributing some of its holdings in its portfolio companies directly to its shareholders? If this is your question, I'll give it a whirl... to be precise, every share of stock distributed by SFE to its shareholders reduces SFE's basis in the IPO'd venture and therefor decreases SFE's NAV and thus in the strict sense of valuation would correlate to SFE's stock trading down thus reflecting the reduced NAV of SFE, but this would be offset for a SFE shareholder by the increased value of one's holdings by the shares that were distributed to him/her by SFE. In short, if you don't sell any shares of SFE or the shares received in the DSSP, one remains whole from a "valuation" perspective. The good news is the positive PR from this program and its ability to attract institutional and individual ownership due to one's opportunity to profit materially from trading in and out of high flying IPOs should add up to a net-net positive for SFE and its shareholders, a club of which I am a proud member. Sorry for the run on sentences... Teflon

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next