SmarTalk (SMTK) Message Board

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Technology Stocks : SmarTalk (SMTK)

SMTK 1.190

-17.9%

Dec 30 3:59 PM EST

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To: Mark Hutnick who wrote (264)	1/19/1999 5:57:00 PM
From: Noblesse Oblige	Read Replies (1) of 283

Smartalk sells its phone card business for $192.5 million, but at the end of September, it had approximately $153 million in long term debt. I haven't studied it and haven't seen any full announcement, but based on 27 million outstanding shares, it would appear that the real value (after protection from the bancruptcy filiing allows for an ordinary sort of liquidation) is about $1.50 per share. Please note...this analysis is down and dirty, and hasn't waited for any further information regarding the deal structure/other items. AT&T paid about one times annual phone card sales for Smartalk's book of customers. It would also appear that someone...or perhaps many someone's...had a good idea of the valuation very early in the day. One can only wonder if the Agencies will have a look at it. I await confirmation of the numbers, too. Adios.

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