Audio and Radio on the Internet- NAVR Message Board

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Technology Stocks : Audio and Radio on the Internet- NAVR

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To: dennyv who wrote (4515)	1/18/1999 8:31:00 AM
From: Lane Hall-Witt	Read Replies (1) of 27722

Since we don't know anything about the number of shares involved yet, it probably makes more sense to speculate on market cap for now. NAVR currently has a market cap of $242 million. About 2/3 of this value has been added by the IPO speculation, meaning that NAVR's "intrinsic" value is about $80 million and its "IPO value" is about $160 million. NAVR will own 40-50% of NetRadio after the IPO: so, to sustain NAVR's current price levels, NetRadio's market cap would have to hit $320-400 million. (If you then go on to assume 10 milion shares outstanding for NetRadio, you get $32-40 per share to maintain NAVR's current $18.) For comparison's sake, it's worth noting that BCST's market cap has ranged from $560 million to $4.95 billion since its IPO. BCST has a current market cap of $2.39 billion. On its IPO day, BCST closed with a market cap of $1.07 billion, hitting an intraday high of $1.27 billion. This is rough, as it doesn't account for accounting and tax specifics that may make adjustments necessary. But this line of calculation is what I'm using to try to "value" the NAVR/NetRadio play right now.

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