WCAP - Winfield Capital: Insider buying Message Board

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Microcap & Penny Stocks : WCAP - Winfield Capital: Insider buying

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To: NeverRight who wrote (482)	3/18/1999 11:24:00 PM
From: Tom Hua	Read Replies (3) of 1305

basically the company is worth just what its book value is the same as a mutual fund would normally sell around its net Asset Value (NAV). Mutual funds' holdings are liquid, they can be bought and sold anytime. Therefore NAV of a mutual fund is determined by the value of stocks it owns. A investment company like WCAP will never be valued by the NAV of its investment because its holdings are illiquid, shares are restricted. The stock will always be valued at a discount. For example, MALL stock price is discounted by about 50% from the intrinsic value contributed by UBID. Likewise, UPCOY's intrinsic value is discounted by more than 50% in UIHIA's stock. In fact, WCAP uses a 30% discount of its holdings in COOL when computing the unrealized capital gain. If you add up WCAP's investment in COOL, ROWE, and estimated values in Worldgate, Mpath, and Juno (don't forget the conversion factor when converting preferred shares to common shares), then throw in a 50% discount for non-COOL investments, and a 30% for COOL, you come up with a stock value of about $5 for WCAP. Other investments are worth about $2-3. Fair WCAP value = $7 to $8. Regards, Tom

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