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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce

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To: Smart_Asset who wrote (220)4/30/1998 11:31:00 AM
From: M. Frank Greiffenstein  Read Replies (1) of 2752
 
TSQD will be left with alot...

TSQD will be left with two things: 23% of DR's profits/losses and the per share value of 23% of DR's market cap. If DR market cap goes to a billion dollar lets say (just hypothetical but possible!), then TSQD balance sheet would reflect at least 230 million in "Cash and marketable securities." That would work out to $23 a share based on DR valuation alone.

There are a number of stocks whose performance rested on solely on ownership interest in another ocmpany. Look at Seagrams. They owned 25% of Dupont stock for many years. The CEO sold this stock to buy into cable and movie ventures. If Edgar Bronfman had held on to his Dupont, Seagram stock would be worth $60 a share **just based on current Dupont valuation alone.** Seargram stockholders dividends derived only from Duponts dvidiends for many years!! I think Segrams still trades in the 30s now. It would be well over 90 if it had hung on to DuPont.

DocStone
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