PQT can be played as a back door to PCQT.
As of July 28, 1999, PQT had 15,000,671 common shares outstanding. There were also preferred shares outstanding that are convertible into a minimum of 4,786,600 common shares. Additionally, there were options and warrants on 6,436,694 shares at an average price of $1.70 per share. If these options are exercised and the proceeds are used to purchase shares on the open market at the current price of 7 3/4, this will result in additional net dilution of 5,106,941 common shares. If you add the current number of common shares outstanding and the potential dilution from the preferred stock and the various options, there are approximately 24,808,422 common shares.
PQT will be offering 1,950,000 of its PCQT shares in the IPO, generating, at an offering price of $13 per share, approximately $25.35 MM in cash, or $1.02 per share. PQT will be retaining 7,850,000 shares of PCQT. Assuming a price of $13 per share, these shares will have a value of approximately $102.05 MM. Discount this amount by 40% for tax and liquidity considerations and you are left with $61.23 MM, or $2.47 per PQT share. Subtract the $2.47 and the $1.02 in cash from $7.75, the current price of PQT, and the remainder of Hyperfeed is currently being valued at $4.26 per share. Assumed that PCQT pops 50% and the remainder of Hyperfeed is currently being valued at approximately $3.03 per share.
PQT was a no brainer when it was at 5 a couple of weeks ago. At 7 3/4? Maybe. The above is just the humble opinion of my calculator. |
