AGREED, the ANTICIPATION of the DIVIDEND was the Big Issue
here, more so than the Dividend itself... I have e-mailed the IR to express the disappointment of many long term holders with large positions acquired in the open Market... It's quite possible that the Company will do something to sweeten the Deal... In any case the fundamentals are still here and stronger than ever...
Mo, it is clear that the spin-off has created much more Wealth and will continue to do so because of the notion of PE... Shopss.com within OSCR had the PE of a Telecom Company of around 25... Outside of it, it's a pure Internet play with a PE that could equate its rate of Growth or at least, say 100... Based on my estimation of Earnings per share of $2.00+ for Year 2000, that's a potential price of $200.00 within 12 months....
Now, look at the old and new Market Caps, taking OSCR at its high of $5.50 in both cases:
OSCR @ $5.50 X 16.8 Millions shares = $92.4 Millions
SHPS @ $6.25 X 22 Millions shares = $137.5 Millions
Take away the $25 Millions Cash injected and you still end up with $112.5 Millions of newly created Wealth that wouldn't have existed without the Spin-off... Since OSCR owns 60% of this new Wealth ($67.5 Millions), its new Market Cap + Assets in SHPS is now a grand total of $92.4 + $67.5 = $160 Millions in round figures...
So, as I have said before, it's a VERY GOOD DEAL for all concerned which can only become much better with time... Also think of all the other potential Spin-offs from OSCR still in the offing...
Do thorough DD and only invest what you can afford to lose....
Regards, F. Goelo + + +
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