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Technology Stocks : Creative Computers(MALL)
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To: Tom Hua who wrote (528)11/25/1998 12:13:00 AM
From: Clarksterh  Read Replies (1) of 1634
 
For those who are worried that MALL will not follow UBID, you only need look at how well WCAP follows COOL. The only reason that WCAP isn't worth more is that they only own 6.6% of the outstanding COOL stock, and in order to actually get access to the money they must pay taxes of about 36% on the COOL stock value (which MALL does not). Thus for today, since the market cap of WCAP without COOL is negligible, I would expect the market cap of WCAP to be:

$830M(COOL Market Cap) x 0.066 (amount of stock WCAP owns) x 0.64 (tax rate)= $35M which is almost exactly the actual market cap of WCAP. It tracks very closely.

Clark

PS The bigger surprise is that it took a few days for WCAP to track COOL correctly. At the IPO WCAP was substantially more than it should have been relative to COOL and took a while to settle into the right spot.
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