TSATA and TSATB are "valued at par", as they represent interest in the
same company, TCI Satellite Entertainment, a holding company and tracking
stock for PrimeStar, of which it owns/owned 37%.
TSATA ~57+MM Shares / TSATB ~8+MM Shares
Difference is that B shares carry 10 votes per share and are closely
held by John Malone and the Magnus family whose shares Malone can also
vote. This, plus somewhere between 650K and 1.5MM shares of the A stock
are what gives Malone full control over TCI Satelitte Ent. (TSATA/B)
The float on B shares is very low which is partly responsible for the
sharp move to 15+ last week which was caused by an error in a Reuters
report which confused TSATB with TUNE.
Once the deal with DirecTV (GMH) goes through, hopefully by the end of
the month TSAT which owns 37% of PrimeStar will have about $1 in cash
and stocks. In addition to this TSAT has a significant amount of Net
Operating Losses (NOL). These losses can be carried forward to offset
future income. Depending on tax-rate of a company these NOLs could be
worth as much as $5+/share for the right company. (e.g. Malone's Liberty Leftovers)
This brings the total maximum value of TSAT shares to $6+. However, more
realistic is to assume a deep discount for the NOL 'asset' and a total
valuation in the $2-4 range once the deal is done and there is an interested
party that will "buy" TSAT. Some speculate on a new internet related
venture, with the stock hitting double digits upon annoucement. While
I wouldn't mind making a quick million, I see this as a pipedream.
And then there is the potenial of using the TSAT shell with its then
$67MM and using this to forge ahead into a completly new arena. Also
a good bet based on Malone's history.
For more information I suggest you vistit the Yahoo! board on TSATA,
one of the better boards they offer. Once there, pay particular attention
to posts by the following:
BillSmith9, Dishmover, Scan175, Satellite Dishwasher
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