I ran some numbers based on FBR's report of 3 May 2000.
The exceptions are that the public equity is from today's closing price
using the SI public portfolio,
and the number for annuity operation
per FBR is $6.36 on an "earnings" multiple
and 2.0x book on a p/b multiple:
The first number in the column is book value,
the second a multiple deemed appropriate to the industry:
Financial Services
Annuity Operations 3.26 2.0x = 6.52
SAI and Money Management 1.25 2.4x = 3.00
Cash per share = .47
Venture Capital Operations
Private Equity 2.80 5.0x = 14.00
Public Equity (absent taxes) = 13.46
TOTAL estimated value: $37.45 per share.
There is no capital gains tax on EXTN, PKTR, SABA and most of NUFO.
As FBR previously claimed: this reflects the sum-of-the-parts valuation,
and an estimation of the company's value TODAY.
There may be as much as .50 to 1.00 per
share for payment to exercise options in the stock ownership trust.
I am not certain about this, for the shares
are purchased from a loan made by the parent,
and is paid back when options are exercised.
I don't know how they account for this.
Anyway, there is plenty here to like once
the stock garners some interest and
starts to move again.
***
For a couple reasons specific to Heartland,
I do not see the selling by Heartland
in the first quarter or even this quarter
as anything significant, and it appears that
as of 3/31/00 at least one of the funds,
Heartland Value Plus, still held LDP as
its largest holding.
heartlandadvisors.com
In general, I don't think it particularly
enthralling if value managers like those
at Heartland like LDP. I am more interested
in the company as a growth prospect.
Interesting isn't it that in LDP, you have
both Kinetics Funds and Heartland Advisors,
completely different styles, growth and value,
rubbing shoulders......I suppose we have
somewhat seen the same right here
on this thread.
Just a thought but wouldn't mind
seeing the public portfolio back up
a little more prior to the quarter end
to even out reported earnings a bit.
I suppose you could say this quarter is
attributable to a few holdings or events
in the quarter. Well isn't it what this company
does? IMO, there is likely to be more
quarters with similar happenings. Bottom line
is it is still great performance in a quarter
where the IPO market was essentially "closed." |
