I have one hot tip on VRSN, SDTI has owned 18.3% of Vrsn.
SDTI is a stock I was very long from thanksgiving into Jan.
VRSN's mkt cap is 3.737 billion , 18.3% of that is 684 million dollars, which is what SDTI's stake in Vrsn should be worth.
SDTI which makes data encryption software and is a legitimate company
with a 26 PE has a current market cap of of 761 million.
we need to look up to see if SDTI has been selling their vrsn stake if not it will be going up unless VRSN coming back to the stratosphere.
I show VRSN having 24.2 million shares outstanding
Here is a Dec 98 Bus Week Friday Buzz on sdti
DYNAMISM AT SECURITY
DYNAMICS
The sharp growth in E-commerce has produced a throb of security headaches.
So some pros see opportunities for Security Dynamics Technologies (SDTI),
which makes products to protect computer data. Since Oct. 8, its stock has
leaped from 6 to 19.
That rapid rise doesn't faze the bulls, who think Security Dynamics may again
reach its 1997 peak of 44 during the next 6 to 12 months. ''The stock could go
back to its old high for two reasons,'' says one San Francisco money manager:
There's a huge market for its products. And ''the company could be a takeover
target.''
Through its RSA unit, Security Dynamics makes cryptographic and electronic
data-security products. Security Dynamics also licenses its technology to
manufacturers. Microsoft, for instance, embeds the encryption on its Windows
NT system, Intuit uses it on Quicken, and Netscape has it on the Netscape
Navigator. Security Dynamics' products use a patented smart-card technology
and access controls that authenticate users' identity.
To ward off unwanted suitors, Security Dynamics has authorized the buyback of
4 million shares. The company has $150 million in cash, or $3.50 a share, notes
Dawn Simon, an analyst at Brown Brothers Harriman, a New York investment
firm. It also owns a minority stake of 4.4 million shares in VeriSign, a provider of
digital solutions and infrastructure to conduct secure commerce over the Internet.
James Wade of BT Alex. Brown estimates Security Dynamics will earn 51 cents
a share this year and 70 cents in 1999. At its current price, says Wade, ''the
stock is significantly undervalued.''
By GENE G. MARCIAL |
