Marconi,
We obviously are not going to agree on our perspectives for valuing WCAP. The street values WCAP at +/- 3X book value so who are we to argue?
As for a slowing in new investments, WCAP had 4 in the IPO pipeline in calendar Q2 but only 2 were announced as new investments that quarter. Since those IPO's, WCAP has announced investments in E-Stamp, BlueStone Software, MarketFirst Software, Internet Gift Registries, and Wedding Network. Their 10-K alluded to other recent equity investments that are still unnanounced. Is this a "trickle"?
I agree one could pick up the underlying publicly-traded assets for about $11 per share but how would you propose one to buy underlying equities in those latter companies, along with PNV Net, Vivid Semiconductor, Pseudo Programs, TeraStor, SynQuest, etc? IMHO, it would be very myopic to value WCAP on its current assets and ignore the LT compounding that a talented VC team can generate. Fortunately for many, WCAP's publicly traded structure gives everyone the opportunity to participate in VC investments through a team that is establishing a solid track record and earning 300%+ gains on working capital.
Regards,
TJ |
