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Technology Stocks : Data Broadcasting Corp. (DBCC)
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To: esecurities(tm) who wrote (4234)1/19/1999 10:36:00 PM
From: esecurities(tm)  Read Replies (2) of 5102
 
BULL MARKET Report Update on DBCC.

"DATA BROADCASTING PRICE DISCUSSION DEPARTMENT"

Data Broadcasting (DBCC) owned 50% of MarketWatch.com (MKTW) before the offering and 38% after. Some of you were confused and couldn't understand why. Here's the scoop: Before the offering, DBCC had 50% of an asset that had no public value. The IPO was an offering of 2.75 million NEW shares at $17 or at total of $47 million. After fees the company has $45,000,000 in the bank that they didn't have before. The existing stockholders had their ownership diluted by 24%, but for that dilution they own a public company with $45M in the bank and with a value per share of $100.

Why did the stock go down 9 points on Friday and down almost 3 more today? To answer that question, please answer the following question: Why did the stock go from $10 where it had been for months and months to the 20's and then the 30's last week? The answer is because of the anticipation of the IPO. Wall Street is known for "buying the rumor and selling the fact." And this is exactly what has happened here. Is it a good buy here? We liked it a week ago Thursday at $16.75 before the IPO. The price of MKTW now is beyond our wildest dreams – we thought $34, a double would have been quite nice, thank you, but $100?? We are very pleased. And in fact, we like DBCC even more..."

source: © 19 Jan 1999 The Bull Market Report Vol 11, #13 bull-market.com

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