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Technology Stocks : UCOMA UnitedGlobalCom

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To: TraderXx who wrote ()1/26/1999 9:21:00 PM
From: Jetter  Read Replies (1) of 489
 
Trader,

This was a very interesting development today. I've been trying to do as much research today as I could on both UIHIA and UPC... What do you think of this valuation?

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UPC will offer 40 million shares at approx. $30 per share in a $1.2 Billion Offering. (Microsoft to get 10 million shares for approx. $300 million)

UIHIA will own 77 million shares (63%) after the IPO.

What is the total number of shares outstanding for UPC after the IPO.

If it is 120 million shares at $30, then UPC will have a market cap of $3.6 Billion.

If UPC is worth $3.6 Billion then 63% of that is $2.2 Billion.
That would mean UIHIA at only $1.5 Billion Market Cap is way undervalued at this level and should be worth much more.
Assuming only a 2.2 Billion Market Cap, UIHIA is worth $75 per share.

Regards,
Jetter
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