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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 3:06:00 PM
From: bodie  Read Replies (1) of 27722
 
Here are my calculations.

10M / 13.5M = 74% If NetRadio issues 10M shares and NAVR retains 100% ownership then one share of NAVR is worth 74% of one share of Net Radio, or 1 share of NAVR = 1.35 shares of NetRadio.

Half of 74% = 37% If NetRadio issues 10M shares and NAVR retains 50% ownership then one share of NAVR is worth 37% of one share of NetRadio, or 1 share of NAVR = 2.7 shares of NetRadio.

Assume NAVR runs up to $40, and then subtract the $5 that it was already trading at, prior to IPO.
$35 * 2.7 = $94.5. NetRadio needs to run up to about $94.50, which IMO is attainable.

msnbc.com
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