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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: JDN who wrote (30127)4/7/1999 1:55:00 PM
From: Karl Drobnic  Read Replies (3) of 31646
 
Takeovers: Two small-cap stocks that I own accepted buy-out offers in March. Both were at prices less than I think they are worth. One was less than the real asset value of the company, at least as I see it, but at a premium to the Wall St. value of the company. So my perspective is that small-caps are being bought up because they are bargains, and rather than getting a premium to the real value of the company, shareholders might find the company going at a discount to the real value. It's classic Graham-Dodd stuff: Find something that is selling at less than it's worth, figure out the reason (money is chasing momentum stocks), and then buy it up at a discount. Value abounds throughout the small cap sector, but I don't see any force that is creating rich premiums for buyouts in small-caps.
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