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Strategies & Market Trends : Trader J's Inner Circle
NVDA 182.47+1.6%3:36 PM EST

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To: dennyv who wrote (4696)1/15/1999 10:59:00 PM
From: SteveDavis  Read Replies (1) of 56535
 
dennyv,

NAVR The spinoff of NetRadio will be successful as this is a "real" company as opposed to some of the other Inets that are just good business plans. It is similar to when AT&T spun off Lucent to free up the unrealized value that was there. Look, these guys are not stupid and they understand the high value that will be place on NetRadio even if there is a large pullback after the initial fury of the IPO is over. The shares of NetRadio that are owned by Navaree enhance the value of the company. I would think a good, conservative number for the IPO shares to settle would be to take the initial price and multiply by 2.5-3.5. Then back that value into the shares of Navaree and you can see how much NetRadio enhanced Navaree per share.

Steve Davis
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