BACKDOOR, an IPO> IDTC,BRKT,BNYN,KLOC,NAVR Message Board

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Technology Stocks : BACKDOOR, an IPO> IDTC,BRKT,BNYN,KLOC,NAVR

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To: Ken Whiteside who wrote (864)	9/9/1999 2:24:00 PM
From: Glenn Petersen	of 954

Good advice on the exit strategy. Hoover's has the initial pricing for ISPD in a range of $10-$12. hoovers.com BRKT is selling 1.5 MM shares as part of the IPO and retaining 6.5 MM shares. If the IPO is priced at the high end of the range, BRKT walks away with $18.0 MM in cash, or about $1.64 per share. If ISPD doubles to $24 per share, BRKT's remaining stake has a value of $156.0 MM. Discount that number by 40% for tax and liquidity reasons and you are left with $93.6 MM, or $8.54 per share. If you assume a double for ISPD, the IPO adds about $10 of value to BRKT. It may already be priced into BRKT's stock price. This stock was a no brainer at $13. Not necessarily at $18. JMHO. Good luck.

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