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Gold/Mining/Energy : T.ITE: iTech Capital (TSE)
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To: Mr. Oil who wrote (3745)1/17/2000 3:05:00 PM
From: CF Rebel  Read Replies (2) of 5053
 
Ray,

What first attracted me to JDX was the book value selling price of the stock and it's stated intentions. My original assumption was that Jordex would buy one company in the telecom/internet area. Because most companies in that area sell for many times book value it wasn't too hard to hear "cha-ching!" Then the company announced that it was going to do some incubating. Again, "cha-ching!"

With the investments the company has since made, there is one question. Will the investment community (short-term traders get outta here) value Jordex like the internet incubators with their gonzo valuations or will it be valued more traditionally because of a mix of traditional (Enviromation, BizPhone) and internet holdings? With a traditional valuation we're more likely to be valued at a discount to holdings, like a conglomerate.

It looks to me like Jordex will be valued traditionally for some time. It looks like the market will only be willing to give it an "incubator" valuation when the company begins to turn over it's early investments which may be a year or two away. Investors want the proof of successful investments being sold for reinvestment before they're willing to pay more for the stock. This is what happened with CMGI. If the company, additionally, is able to communicate this intention to the investing public (and the company is still mum), then we'll see some real interest. So two things - the company will have to demonstrate it's strategic intent and then follow through unequivocally.

In the same vein of traditional valuations, check out this release:

biz.yahoo.com

"BCE remains considerably undervalued because investors seem unwilling to pay for the value of the pieces under its corporate umbrella."

And look at those great pieces.

CF Rebel
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