Bought BGF at 29 3/4, and will throw it out for discussion here. CFSB reiterated strong buy today. BGF owns large positions in several internet companies which have either gone public or will soon. Here is a summary from CFSB:
<<AM CALL: BGF: Market Yet to Realize BGF's Strategic Investments (PT 1 OF 2)
Credit Suisse First Boston
Steven N. Barlow
March 22, 1999
STRONG BUY
SMALL CAP
BIG Flower Holdings, Inc.( BGF)
BGF's Internet investments could pay dividends with financial and intellectual capital gains
Summary
Big Flower Holdings has expanded its internet investment portfolio, and its value at 5.0 times our 2000 EBITDA estimate, does not reflect the potential value of these investments.
BGF owns 1.8 million shares of 24/7 Media (TFSM), 737,864 shares of the MiningCo (expected to go public in third week of March), and an undisclosed number of shares of WorldGate (filed an S1), Andromedia, Inc and NuTel Corporation (both private, start-up co's).
While all five investments could lead to substantial gains, BGF has key personnel on 3 of the 5 boards and is leveraging the knowledge these companies have of the Internet, direct marketing and new technology.
Besides these strategic investments, its core operations are running on all cylinders, and we expect strong results in the quarter and year. We reiterate our Strong Buy rating.>> |
