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Technology Stocks : Data Broadcasting Corp. (DBCC)

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To: James Thai who wrote (1645)12/10/1998 10:52:00 PM
From: Ashley800  Read Replies (4) of 5102
 
<< Assuming it opens around $20, how much of a benefit does DBCC's 38% actually us in shareholder value?>>

Could someone explain the actual connection between the divesting company and the newly IPO'd company? I really don't see what all the hype is about with the likes of MALL, NAVR, USAI because all their shareprices have returned to where they were (or just about) before any mention of the IPO.

If the divesting company receives zero revenue from the new public company why would the parent company's share price rise if the IPO'd company rises (UBID, Ticketmaster both did well and the parent company still dropped). The 38% DBCC will own of Marketwatch will be listed as an asset on its books, therefore are we assuming the stock of DBCC should increase 50% because one of its assets has increased in value?

Stocks trade on earnings. If the IPO'd company doesn't add to the earnings, I think all the hoopla about buying the shares of the parent before the IPO happens is nonsense. I hope someone can correct me as I bought this stock at 13.5 and might look to avg down just to get out "when all the nonsense starts" like it did with NAVR (5 to 26 in 10 days), MALL (15 to 61 in 2 weeks) and USAI (25 to 39 in 2 weeks).

I'm not trying to single out DBCC as a good or bad investment on its own only the spike in share prices when the IPO comes near only to have it drop right back again.

Thanks for any answers or opinions.
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