I can not verify the purchasing price for Ken and Walt. I read that from that magazine.
Look at insider info of ICGE, it helps a little bit
biz.yahoo.com
Aug 5 JADALIA SAM acquired 750,000 at 12
Aug 4 JADALIA SAM Initial Filing 1,150,000
We can be sure that Sam bought at 12, plain purchase at IPO price, no option exercise since he just joined ICGE two months earlier.
My point is that ICGE has very few employee, everyone of them is high-level person, very rich, can be CEO right away for a startup. They came together with the same belief that make the new new thing happen. It is not like a software company where large number of employee shareholders are lowly programmers, who seize every chance to get rich quick. They will dump their shares first things first when the that lockup ends.
I understand this since I am working for a software company just like that.
There is no such model to value ICGE, that is the point. Henry Blodget says ICGE is worth 10 times its holding companies. why 10? why not 3, 20 or 100? If you use 10 multiple, ICGE should be around $150. Now the multiple is well over 13. I really don't know how high it could go.
Interestingly, I initially valued CMGI by adding all its holding together, it is less than $100/share. I sold some at $104. I regretted it very much.
Good luck for you no matter you are long or short.
Happy new year and happy trading.
Larry |
