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Technology Stocks : NextCard, Inc. (NXCD)
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To: The Osprey who wrote (143)1/10/2002 3:29:32 PM
From: Buckey  Read Replies (1) of 192
 
So let me comment on this NXCD situation. People get laid off and some in IT have been rumoured to have been let go - well that doesnt mean much really.

A rumour that they are closing in not likely as all banks including NXCD operate in a regulated environment governed by the OCC and the FDIC. These agencies wil protect the customer accounts in the event of any buyout, sale in part or in whole as well as a proposal to wind down.

SO in any event the customer accounts will be sold off as accounts just cannot be terminated either on the deposit or the loan side but certainly more so on the loan and CC side.

I will not apply any value to the technology but I am sure there is some there. BUt I will comment on the fact that 1.2 Customer are worth something even if they are largely high risk.

BUt I will comment on the cash position. The company had $118 Million in cash on sept 30th and apart from the abnormal amount teh OCC forced them to set aside they had aalmost a ZERO burn rate. The shi* hit the fan - I would expect the cash position is stable so about $2 per share plus a possible sale of the customers at $50 a pop average could generate another $1 pershare.

$3 per share value is not out of the realm for this company but right now I will be quite happy with $1.75 which has been my target all along. Thats 300% from here or a 4 bagger.
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