TJ, here's the analysis. First of all, some background info:
1. The main reason WCAP recorded a 30% discount of unrealized gain/loss is because of tax issues. When they liquidate their holdings, the realized gains are subjected to a 38% tax rate, 800 basis points higher than the discount, as WCAP doesn't have much of an accumulated deficit to offset gains.
2. The unrealized gains/losses are computed based on the closing price of the last day in the quarter.
3. A 30% discount is taken for unrealized gains/losses on the balance sheet. Taxes are not computed for unrealized gains/losses.
4. COOL closed at 27 1/2 on 12/31/98, at 19 3/4 on 3/31/99.
5. Losses from operations are about $0.06/sh.
If you punch in the numbers, you'll see that WCAP will report a loss of $1.62 fully diluted, loss of $1.43 basic for the quarter ended 3/31. I chose the midpoint of about $1.50.
Using the same method, you can see that WCAP will also report a loss for the current quarter unless COOL closes above $20 on 6/30.
As for COOL has been to $45+.
And it has been to 5 3/4 too. For the year, many net stocks that I track have doubled, tripled, or more, but COOL lost almost half its value. There's a higher chance that COOL goes back to single digits than making new high.
Regards,
Tom |
