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Technology Stocks : UCOMA UnitedGlobalCom

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To: TraderXx who wrote (3)1/27/1999 12:51:00 AM
From: steve host  Read Replies (1) of 489
 
WOW - MORE NEWS HAS COME OUT ABOUT THE MSFT ALLIANCE - I revise upward my estimated worth of this company based on the following:- It is becoming very apparent that UPC will be the ATHM of Europe - MSFT gives details of what they have in store for it's partnership - I doubt there will be profit taking for awhile on this issue. This is why - ATHM value = 13.4 billion. After IPO UPC will be well undervalued at about 3.5 billion at the IPO price - looks like a lot of room for UPC and therefore UIHIA's investment to grow. Not to mention the 1.25 billion in cash that UIHIA will be flush with from the offering.

Am I missing something here? you have $42per UIHIA share coming in from the IPO - $22 in debt = $20 in cash from the offering (after debt) and then you still have their 63% ownership stake in UPC after the IPO which would be valued at $74 per UIHIA share (77m x 30 IPO price div by 31m shares outstanding) which would give us a $94 stock value not taking into account any other subsidiary of UIHIA (asia etc) and assuming that UPC stays at an IPO price of $30, if that is increased then you have more cash into UIHIA or if the IPO takes off as it probably will then this value shoots up. Please tell me what I am missing here - is this the deal of the century or what?

Oh yeah, almost forgot here is the NEWS item which should make the IPO HOT !

biz.yahoo.com
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