Hey guys, thanks for the info on BKS/BNBN, you guys have convinced me that BKS has some room to run before the IPO comes out.
I've got one that looks fairly promising: NVDC owns the auto web sites uswheels.com, carwizard.com, leasesource.com
Although NVDC (Navidec navidec.com) has not yet filed to spin of the auto sites, the management has announced that the spin off is "probable". NVDC has a market capitalization of only 37 million and that capitalization covers not only the auto web sites, but the net solutions side of NVDC as well. NVDC has stated that they will keep a 70-80% interest in the new IPO.
AWEB and ABTL are valued at 600 million and 400 million respectively. If NVDC's auto web sites are worth only 1/4 of ABTL's then NVDC's stock should have a market cap of 100 million plus, which puts NVDC in the $40 range (it currently trades at $11 3/4).
NVDC was momentarily noticed when the AWEB and ABTL IPO's came out, but then NVDC was forgotten and the stock has not moved since management has said that the IPO is probable.
Here is a copy of the most recent press release which mentions the IPO. I can't provide a link because I got it off of Westlaw. It is a Dow Jones article but for some reason it doesn't show up on news searches on the financial stock sites.
4/18/99 Dow Jones News Serv. 19:55:00
Dow Jones News Service
Copyright (c) 1999, Dow Jones & Company, Inc.
Sunday, April 18, 1999
Navidec Spin-Off Probable; New Web Site Capability Planned
By Tom Locke
DENVER (Dow Jones)--Two major moves appear to be on the horizon for Internet
solutions and automotive Web site company Navidec Inc. (NVDC).
Executives of the 6-year-old company say a spin-off of Navidec's automotive
unit is probable and that a new service to allow purchasing through its
automotive Web sites is in the near-term future.
The Englewood, Colo., company announced March 30 that it was "considering a
plan" to establish a new entity for its auto unit. That move is "probably
something that will occur in the next six to 12 months," Chief Financial
Officer Pat Mawhinney told Dow Jones.
The major Web site-enhancement move is "in the near future" and would enable
consumers to purchase autos using Navidec as a single point of contact, said
Navidec Vice President Michael Kranitz. "We intend to make the transaction not
only more convenient but less expensive."
Now Navidec auto Web sites take consumers to the "purchase request" stage, in
which they enter their names and contact information for follow-up by a dealer.
But soon consumers will be able to act on a fixed, quoted price and receive
closing documents via Federal Express.
Creation Of New Entity Aimed At "Undervalued" Stock
Money raised in an Automotive Group offering would be used partly to build
brand awareness, Chief Executive Ralph Armijo told Dow Jones. "Our biggest
weakness today is that we're not recognized. People don't know us."
Navidec hopes to remedy that, not only with consumers but in the investment
community. It recently hired the Financial Relations Board for public
relations, Van Kasper & Co. as its financial adviser, and Arthur Andersen as
its accounting firm. "We've really tried to package ourselves," Armijo said.
Both Armijo and Mawhinney described Navidec's stock as "undervalued," a
condition they hope to address through the spin-off. They think the separation
should simplify things for investors, thus unleashing value. "Most investors
don't understand both sides (of Navidec's business)," Mawhinney said. |
