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Technology Stocks : Comdisco, Inc. (NYSE: CDO)

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To: John William Anderson who wrote (381)1/26/2000 1:14:00 PM
From: Glenn Petersen  Read Replies (1) of 689
 
"does the IPO establish the price for...a sale?"

Maybe. My guess is that the (current) market will give Prism a higher valuation than CDO would receive in a private transaction. The big question, however, is whether these Internet valuations will still be intact a year from now. If CDO management thinks that there will be some sort of significant market correction within the next year, they may opt for an early sale of the private entity. A tax free deal could easily be structured with WCOM if it is done with stock.

I think that today's decline reflects disappointment on the part of some investors who were looking for a Prism filing this month. Also, there was no announcement on the venture capital piece. IMHO, CDO is a relatively safe buy at these levels.
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