Shaw is recommended as a "strong buy" by analyst Robert Bek at CIBC World Markets. The 12-month target price is C$50.00 per share.
Analysts had forecast a loss of 4 Canadian cents per share for Shaw. Shaw greatly exceeded expectations by reporting second quarter earnings of C$71.7 million or 33 Canadian cents per share for the period ending February 29. This is 134% higher compared to the C$30.7 million, or 14 Canadian cents in the second quarter last year.
Shaw Venture's investment portfolio of public traded companies as at February 29, 2000 is worth C$3 billion!:
Restricted
Unrestricted Shares Fair Market
Investment Shares and Warrants Total Value(1)
---------- ------------ ------------ ----- ------------
Terayon 1,500,000 1,500,000 3,000,000 $ 934,698
GT Group Telecom 29,096,097 29,096,097 (23%) 872,883
Cancom (2)17,586,264 17,586,264 (42%) 406,243
Liberate 1,900,000 1,900,000 225,856
Moffat 3,962,460 3,962,460 (10%) 134,922
Cogeco Cable(3) 3,019,100 3,019,100 132,840
Liberty Digital 1,372,000 1,372,000 81,901
Open TV 250,000 250,000 61,892
Motorola 214,906 214,906 46,828
Netpliance 1,400,000 1,400,000 37,172
At Home (4)224,142 224,142 10,077
------------
$2,945,312
(1) The fair market value is based on closing prices as of March
24, 2000 assuming restricted shares are free trading and all warrants
exercised.
(2) Adjusted for 2:1 split effective March 24, 2000. Excludes
10,843,600 Cancom shares held in the WIC investment which is subject
to CRTC approval.
(3) On March 24, 2000 the shares were sold to Rogers for a pre-tax gain of $22.5 million.
This month, Shaw made an equity investment of U$100 million in 360Networks. The WIC investment, subject to CRTC and other approvals, provides the opportunity for Shaw to own an additional 20% of Cancom, for a total fully diluted interest of 62%.
In addition, Shaw and Rogers agreed to merge the operations of @Home Canada and Excite Canada into a single national broadband and narrowband portal. Shaw will own 22.5% of the combined entity.
Shaw has 189.8 million participating shares outstanding. |
