TREAD MINING.......WCAP/2 FUTURE IPOs ??
WCAP = Winfield Capital
5.02 mm shs/2.50 mm shs float
earnings should be this week
but see what they own.......
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WCAP Winfield Capital
I like to think of this company as the poor man's CMGI.....It is a publicly trade Venture
Capital fund. WCAP's current claim to fame is their ownership of 7.6% of COOL
(approximately 1.7 million shares). WCAP trades at a STEEP discount to the value of
their COOL holdings, and can easily be valued at 1.67 mil shares COOL /5.02 shares
WCAP outstanding or 1/3 (.33). This means WCAP should trade at 1/3 of COOL's
price to fairly reflect the value of their COOL holdings. Currently with COOL trading
$38, WCAP is worth $12.66, yet only trades $7 5/8. WCAP's cost basis for COOL is
somewhere under $2, which at worse case, asuming a tax rate of 40% (although it may
actually be 20% for long term capital gains) which mean on a tax adjusted basis
WCAP's COOL position is worth approximately $7.59. Now thats incentive enough to
buy WCAP, but the story just gets better. WCAP being a venture capital fund is chock
full of investments in many private companies (with IPO potential) the list includes but is
not limited to the following. The 2 stocks that will be hot IPO's will be Worldgate and
Commerce One. Worldgate is very similar to Web TV and will be a SMOKING HOT
IPO, the only problem with these figures is that until they announce the IPO, the
percentage owned in Worldgate could fluctuate. WCAP origionally invested
approximately $2.5 mil in COOL, and their position is now worth $60 million, so the
numbers could be huge for a much hotter IPO Worldgate.
Vivid Semiconductor $1.65 million
RoweCom 440,270 shares rowe.com file
registration for IPO 12/15/98
Worldgate $1.0 million wgate.com
Commerce One $900,000 commerceone.com
HPA Monan $2 million
COOL 1.7 million shares
NATL 300,000 shares
IBCO 1 million shares
CMWL 33,333 shares
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FWIW..@ 10 1/2 this thing is trading at a discount
to the COOL position alone !!
Jim in CT..no position yet..but planning
to put this in the shopping cart .. |
