PWCC. This potential short is so obvious that it probably does not bear mentioning. Flashnet filed an amended S-1 on Wednesday and priced their deal. They split the stock 3.4 to 1 and will sell 3,000,000 shares @$12-14 per share. PWCC will own 1,120,266 post split shares. Assuming that the 15% over-allotment option is exercised, there will be 13,646,233 shares outstanding after the IPO.
ISP valuations (per subscriber) currently range from approximately $2,000 (PCNTF) to $3,300 (PRGY). Assume Flashnet's 170,000 subscribers are valued at $2,600 each. That gives the company a total valuation of $442,000,000. That works out to $32.39 per share, giving PWCC's position in Flashnet a total value of approximately $36,300,000. PWCC has 3,253,000 shares outstanding. That works out to $11.15 per PWCC share.
PWCC closed at 17 5/8 on Wednesday and has a 52 week low of 2 1/4. They do not appear to have anything currently in the pipeline that is comparable to Flashnet. My guess is that the stock will drop at the open. If not, I would hit this baby hard. IMHO. I hope I havn't missed anything. |
