CCEE Breaking Out Message Board

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Microcap & Penny Stocks : CCEE Breaking Out

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To: Timothy Hall O'Brien who wrote (12316)	2/15/1999 11:06:00 AM
From: Ben Wa	Read Replies (1) of 12454

This company is pretty interesting. From reading many posts, management is heartily disliked and it seems they got lucky with SWRX. I think the key to analyzing this is to give the non - SWRX portion of the business a value of zero. The 70% of SWRX that CCEE owns is quite valuable. Valuing that 70% at current market values and selling it all would pay off all debt and leave the company with cash more than twice the current share price. What I don't think has been looked at is that a 70% stake in any company is a control block. If another software firm wanted to own SWRX, they'd have to go to CCEE. The actual salable value of the 70% is therefore higher than the current market price, if you assume that SWRX has a bright future. If I were running CCEE, I'd let SWRX run, close down unprofitable operations, settle any legal obligations, and sell the 70% of SWRX they own to a strategic buyer and/or SWRX itself. Then, everybody would be happy. CCEE likely has tax loss carryforwards that would help offset any gains from the sale of SWRX stock, too.

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