WCAP Historic Undervaluation
John,
There has never been as big of a gap between WCAP's market cap...... and their asset value. Pressure has been building since June 30........Since June 30....CMRC has gone up 15 points....and CPST has gone up 40 points.....yet WCAP has gone down 1.2 points.
WCAP has 5.2 million shares outstanding. They own 690,000 shares of CMRC.
WCAP's Public Portfolio is now worth $73,000,000....or $14.10 per WCAP share.
But that's not all.........
Plus....They have $19,000,000+ in cash.
Plus.... They had $1,900,000 invested in Vivid Semiconductor......who was bought out by National Semiconductor on July 19th...and the results have yet to be disclosed.....Phillips was negotiating with Vivid in the Spring....and I think it was a bidding war. WCAP should have at least $4,000,000 coming back on that.
Plus....you have upwards of $14,000,000 invested in about 15 other private companies lining up to go public.
Can WCAP pick a good private company to invest in?
Capstone Turbine (CPST) was one of their latest investments to go public......Their cost was $6.60 per share....Capstone trades above $80.00 per share today. That's a 14 bagger!
So WCAP stock is valued by the market at a huge discount to asset value....most of the assets are CMRC and cash......and with perhaps $23 million in cash, WCAP's annual meeting in in September. Hmmmmm.
I'm hoping for a move to "enhance" shareholder value. With a full pipeline already......and that pile of cash.....lots of possibilities. A distribution (tax free) of CMRC stock to WCAP shareholders would be very, very cool!
Bottom line?.......WCAP should be a very exciting little stock......I think it could double from here without too much trouble. A little help from CMRC....a little help from the "net" sector....and a little help from management......That's all.
bg |
