SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Creative Computers(MALL)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: glen king who wrote ()11/28/1998 3:39:00 PM
From: Steve Lin  Read Replies (3) of 1634
 
===== Valuation of MALL ======

Hi everyone,

I am trying price MALL to see how the UBID ipo would affect it. Please correct me or share any information you like.

----------------------------------------------------------------
Background info:
MALL ownes 82.3% of UBID
UBID IPO = 1.58 million shares
MALL outstanding shares = 10.18 million shares
MALL's Intrinsic Value without UBID = $10 approx
----------------------------------------------------------------

Suppose the stock shoots up to $100, that would increase MALL's market cap by $130.03 million (1.58 million x $100 x 82.3% = $130.03 million).

The increase in MALL's shares price as result of UBID hitting $100 would be: $130.03m / 10.18m MALL shares outstanding = $12.77

So, if UBID hits $100, that would give MALL additional share value ot $12.77. Add MALL's intrinsic value ($10 approx). That would give you $22.77.

What am I missing? Is it because everyone think UBID is going to hit $200 (then MALL = $35.57). Or, for it to be at $56 UBID would need to hit $364.74 (1.56m x $364.74 x 82.3% / 10.18m = $46 ; $46 + $10 = $56).

From $14 to $364.74? That's pretty crazy. What am I doing wrong with my valuation? Please share your thoughts. Thanks.

best wishes,

Steve Lin

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News