LPGLY.................To: Patherzen (28 )
From: Patherzen
Tuesday, Apr 13 1999 3:22PM ET
Reply # of 36
Nice capsule analysis from Yahoo Boards...
by: JZee15 (M/NY/RI) 189 of 192
LPGLY essentially is an insurance company – however, much of the premiums received
are sent to their Venture
Capital firm/Broker-Dealer (Berkley International) which invests in start-up hi-tech,
medical and INTERNET companies.
Last year the company generated approximately $35 million in pretax earnings – and
even with the 50% move in the
stock yesterday, the company is trading at a P/E of 10 (the company made $1.97 in
earnings last year).
The exciting part of LPGLY's future is that it appears that their venture capital
investments are starting to pay off
big-time. For instance, the company owns over 1.7 million shares of Net Gravity
(NETG), which is worth about $60
million. This stock has gone up 30 points this year and, if this just stays at present level,
LPGLY will recognize $40
million in profits. This, by itself, will DOUBLE LPGLY's profits in 1999 (which means
that the company is trading at a
forward p/e of 5 – at the most). AND THE WAY IT IS GOING, NETG COULD
DOUBLE FROM IT'S CURRENT PRICE,
which would generate an additional $50 million in profits. Please note that LPGLY only
made about $8 million in
investment profits in all of 1998.
And this is not all …. The company has a number of other private equity investments
that are going public in the near
future. For instance, they own 15% (2.6 million shares) of Net Perceptions, which has
filed to go public on APRIL 19th
(symbol “NETP”). This news should propel LPGLY's stock as it will have two proven
examples of its investing prowess.
Also, check out the Net Perceptions filings in Edgar – included as one of the major
investors is Vulcan Ventures (Paul
Allen's venture capital holding company). The bankers on the deal are Bancboston RS,
H&Q, and Piper.
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