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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC)

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To: SemiBull who wrote (2292)8/19/1998 7:49:00 AM
From: SlyWombat  Read Replies (1) of 4231
 
What do value SoftQuad at if/when spun/sold off? Surely more than $2M, no? I would hope for all the recent ineptitude from management (primarily in the form of a lack of decision making and an IR and a PR machine) that they would not just give the "bloody damn thing away."

My guess was based upon there being a guess of 25 people in that
group which should have a revenue of $5M, with a profit of 20%
gives $1M per year, which means a sale price of $2M would be a
two year payback. (All imaginary numbers, less revenue, less profit
means longer payback, or lower purchase price)

Given that SQ is losing money each quarter, if they do not make
a decision before the end of this month/quarter, they are extremely
stupid. This would be the catalyst that gives the bloody thing away.
I am surprised they do not just spin it off such that it has no
effect on their strategy and books, but they still maintain a 20%
ownership (or whatever the minimum allowed is).
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