GEAC.....Canadian best kept secret Message Board

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Gold/Mining/Energy : GEAC.....Canadian best kept secret

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To: Jack Jagernauth who wrote (1359)	8/4/2000 7:19:11 PM
From: Ally	Read Replies (1) of 1571

Jack, Based on asset sales (SmartStream fetched C$160 million or $2.58 per share, and inteRealty expected to fetch at least $5 per share), Yorkton estimated that the total market realization value of Geac's assets is in the range of $20 to $22. So, at $8.50 it is selling at 40% of asset valuation. Also, we can use cash flow to value the company. Cash flow is very pertinent in Geac's case, cause it buys other companies for the cash flows of their customers. At $3.00 cash flow per share, discounted at 10%, the present worth is $30. Book value is not relevant for software companies cause they expense their programming and development costs. Cash flow is more relevant. Hope this helps.

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