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Technology Stocks : BACKDOOR, an IPO> IDTC,BRKT,BNYN,KLOC,NAVR

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To: DAVID C. DeANGELIS who wrote (192)1/28/1999 12:47:00 AM
From: steve host   of 954
 
Disagree - XTON is a pure spin off of stock to shareholders. Thus the run is already happening (anyone who want the shares are getting in on them now or already has) - there is no way to estimate what it is really worth. ANyone who wants share in the lottery stock know that they can buy this stock now and get them later - what happens when they are spun off and there is no major house supporting them like a normal IPO. In the case of UIHIA - there is an actual IPO taking place where we know what price it will go for $28-30. Therefore, one can figure out what value there is to UIHIA of their remaining stock. Then you have the intangible of figuring out what the rest of the company is worth, but before you even get there the stock interest in UPC is over $57 at the IPO price alone. That increases by over $2 a share for every $1 UPC goes up after the IPO. The IPO is supported by Goldman Sacks and Morgan Stanley and the company itself is not just an Internet company but a monopoly cable provder in Europe with a deal with MSFT for Internet access.

The two companies are like night and day - and although XTON is cheaper in $ since it is a $3 stock, it is pure speculation compared to UIHIA. Of course that is not to say it wont do well - but it is a gamble based on your estimated value of its other businesses which is hard to estimate as it is for all companies.
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