Sandra and all it is good to be back. The core businesses that CNGR are involved in look pretty solid. The main reason it has my attention is because of the information below that was in the 8k that they filed.
>>ITEM 5. OTHER EVENTS. OWNERSHIP OF INKTOMI STOCK
On or about February 25, 1998 Crown Group, Inc. ("Crown" or the "Company")
purchased 333,333 unregistered shares of Series A Preferred Stock of Inktomi
Corporation ("Inktomi") for $1,000,000 ($3.00 per share). These shares are
convertible into common stock of Inktomi. In April 1998 Inktomi's Board of
Directors approved a 2:3 reverse stock split of its common stock, which if
approved by its shareholders would result in the Company owning 222,222 shares
of Inktomi Series A Preferred Stock. Crown presently has about a 1% ownership
interest in Inktomi. Inktomi is a private company based in San Mateo,
California that develops and markets scalable software applications designed to
significantly enhance the performance and intelligence of large-scale networks.
Inktomi has developed a search engine that enables customers to provide a
variety of Internet search services to end users, and a network cache product
designed to address capacity constraints in high-traffic network routes.
On April 15, 1998 Inktomi filed a registration statement on Form S-1 to register
2,200,000 shares of its common stock in an initial public offering. Of the
2,200,000 shares being registered, 2,000,000 are being sold by Inktomi and
200,000 are being sold by certain selling shareholders. The registration
statement states that the estimated offering price will be between $12.00 to
$14.00 per share (post reverse split), although there can be no assurance that
such offering will be completed, or that it will be completed at the estimated
offering price. At present Crown does not intend to participate as a selling
shareholder in Inktomi's initial public offering. Furthermore, it has agreed to
not sell any of its Inktomi stock for a period of 180 days following Inktomi's
initial public offering, unless approved by Inktomi or its underwriters.<<
The price of INKT is currently over $120 share. That is quite a small
chunk of change. There is some thoughts out there that the restriction on the shares has already been released. Even if it hasn't, I believe the date for the restriction release to take place is December 10, 1998.
This is taken from the last quarterly report, >>In March 1996 the Company's Board of Directors approved a program, as amended, to repurchase up to 3,000,000 shares of the Company's common stock from time to time in the open market. As of July 31, 1998 the Company had repurchased 2,406,939 shares pursuant to this program. The timing and amount of future share repurchases, if any, will depend on various factors including market conditions, available alternative investments and the Company's financial position.<<
Something tells me their financial situation should greatly improve here very shortly with the INKT money. I would look for them to finish
repurchasing the shares if the stock price was still depressed.
Here is their website for anyone that is interested.
thecrowngroup.com
Cary
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