WCAP Earnings estimate is impossible to calculate because they, like CMGI, can calculate their gains arbitrarily. With that in mind, here's some info to ponder.
According to WCAP's 10Q, "There was an increase in unrealized appreciation of investments of $25,064,938 for the nine months ended December 31, 1998...principally related to the market price of one investment in a portfolio company which made its initial public offering on July 31, 1998." WCAP has 1,465,194 shares of COOL and a basis of $1.5M. Essentially they valued COOL at $18.13 per share on 12/31 when COOL was trading around $30. I could be a little off on the shares because the 1.465M includes warrants and I can't confirm if they were exercised in '98. Suffice to say though COOL was not fully valued as of 12/31/98 so they will not have a $15M writedown.
WCAPs actual earnings with ROWE is as follows: $1,489,840 basis for 153,582 shares @ $43 ea = $5,114,116 profit / 5.02M shares = $1.02 EPS. However, if history serves as a guide they will not report the full gain yet.
WCAP's pent-up earnings are about $.25 in COOL (+/-) plus $1.00+ on ROWE. I have no clue what they will report. Their 4th quarter should add about another $2.00 for a FY EPS of about $8.25 (again, it's anybody's guess what they will report). Everyone should be aware that the JWEB position is substantially less than the 1.178M shares reported -- currently 225,330 @ $7.45 per (see JWEB S-1 for Class B pricing). It could reverse-split again as with the ROWE IPO which reversed .34905:1 and took WCAPs holdings from 440K to 153,582 @ $9.70 per (still not a bad profit @ $43 2 months later).
BTW, I have been following WCAP very closely since my initial investment in Nov '98. I had an averaged position under $7 but unfortunately for me, I took my profits on the first spike to 25 and missed my reentry point on the subsequent dip. I'm watching now for a correction to reenter but this stock has not lost any steam yet. Congrats to the longs that have ridden it all the way.
TJ |
