WCAP asset value $120 Million
scottonsocks,
WCAP owns about 1.400,000 shares of COOL.
Here is my take on things:
Winfield Capital has 3 classes of investments. Cash, Common stocks, and pre-IPO stock.
Right now.....I have:
1. Cash.....................$24 million
2. Common stocks....$80 million
3. Pre-IPO...@cost...$16 million
Total.......................$120 million.
Divided by 5.5 million shares, this equals about $22.00 per share.
Now......If WCAP was a regular mutual fund....like Janus or Fedelity magellan......shares would be redeemable for $22.00.
But WinField operates "like" a closed end fund......where the value of the shares are whatever the market will bare. So the market says WCAP is worth $82 million.....even though their asset value is $120 million.
Is such a discount deserved?
What the market has failed to see......but should soon, is that Windfield's assets are not Dr.Koop and E Toys. 65% of the assets are cash and CMRC stock.
WCAP should not be trading at a $7.00 per share discount to their asset value.......Their assets are looking better and better each day......and seem to be benefiting from a net rebound.
1. Commerce One is rocking and rolling......WCAP has $50,000,000 in CMRC......and that may soon go to $70,000,000......this would be worth another $4.00 to WCAP's shareprice.
2. Several of the other stocks WCAP owns....COOL, HEAR, and others....are now moving off of their lows.....Net stocks are due for a rebound.
3. IPOs.....Winfield has a stable of 8 to 12 more IPOs in the wings.....Openport, Screaming media, Petrolium Place, etc. As they begin trading....they will be added to the common stock portfolio......going from "cost" to "market value"......This could add upwards of $80 million to asset value.
Over the next few months.....the asset value of the common stock portfolio will expand as the IPOs begin trading....growing the portfolio.
3a. Look at the last IPO....Capstone Turbine CPST. Winfield owns 112,500 shares....bought them for $6.60 each....they now trade for about $60.00....and make up $7 million of the public portfolio.
Bottom line......I feel that Winfield Capital has "quality" assets....mostly cash and CMRC....not deserving a deep discount.
I also believe that the asset values will be increasing sharply over the next few weeks and months......as CMRC continues upward as a Wall Street favorite..(watch for higher price targets Wednesday morning)..as other net stocks recover....and as WCAP adds more "Capstones" to the portfolio. (four coming fairly soon)
All in all....I think WCAP should deserve a premium to asset value.
I think the market will agree with me...in time.....and with any exposure at all.
Today, The value of WCAP's common stocks, CMRC, and Cash ALONE..... is about $104 million. while WCAP's entire market cap...(@ $ 15.00 per share) is $82 million.
WCAP is a great pure value play now, as the deep discount reverses to a premium.....and an explosive growth story also.......(CMRC and IPOs)
Just my opinion...this is why I have been buying WCAP. Any little bit of exposure....and WCAP goes big.
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