Briefing.com is full of crap, here's why:
First, COOL is no where near as good of a company as UBID. UBID has 15.3 million in revenues last QUARTER. In its last month alone, it generated over $6 million in revenues. It's ranked #3 in online auction sites; above EBAY and others.
Second, WCAP owned only 1.7 million shares of COOL. MALL OWNS 100% OF UBID and will OWN 80-82% of UBID after the IPO. That means, right now MALL owns 7.4 million shares of UBID out of the 8.9 million shares total after the IPO.
Third, MALL plans to transfer UBID stocks to its shareholders 6 months after the IPO. That means, as of right now, for each 1 share of MALL you own, you also effectively own 0.73 shares of UBID stock. WCAP merely invested in COOL. It did not SPIN-OFF COOL like MALL spun-off UBID. UBID is a wholly owned subsidary of MALL. There is a huge difference there.
Lastly, MALL is a great stock. It has a 0.27 price/sales ratio and earned 11 cents/share last quarter excluding UBID losses. Including UBID losses, the company still earned $0.04/share. WCAP is a crappy stock. It can't compare with MALL.
Conclusion: Briefing.com is lame. It doesn't do any research before babbling about something it doesn't know anything about. Sure, you can compare apples and oranges but the comparison means absolutely nothing.
-Ken |
