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Technology Stocks : ITURF Inc. ( NASDAQ:TURF )
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To: drakes353 who wrote (259)4/28/1999 1:02:00 PM
From: Jason Compson  Read Replies (1) of 614
 
With the possible exception of UIHIA (which I keep telling myself to look at but always find an excuse not to), I believe that your additional examples can be distinguished from DLIA/TURF. Your examples (excluding, I think, UIHIA) involve minority investments. In the case of a minority investment in a company in which the investing company has a very low basis, a 40% discount seems entirely appropriate. TURF/DLIA, however, are part of the same tax consolidating group. That makes it much easier for the parent company to close the value gap (i.e. no messy capital gains taxes to the company or taxes on dividends to the shareholder).

As to your second point, why would the discount close in anticipation of TURF street coverage? Wouldn't that have the opposite effect?
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