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Gold/Mining/Energy : TS TELECOM (www.tstelecom.com): ASPIRING TELECO

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To: speculatingvalue who wrote (918)11/22/1999 9:14:00 PM
From: Gordo  Read Replies (1) of 1762
 
Steve,

As has been pointed out previously, holding companies almost always trade at a discount to the combined value of their subsidiaries, therefore a valuation of $2.62 is not reasonable.

A case in point closer to home is BCE, whose share price does not at all reflect the true value of its BELL Canada, Bell Mobility, Nortel and other holdings. Every time Nortel shares go up a buck, BCE should go up 65 cents based on its holding, but if you look at historic stock charts for these two, you will see that this is not at all the case, and that BCE stock price dramatically lags the valuation of the Nortel shares that it holds.
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