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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Dryer who wrote (9607)	7/15/1999 5:25:00 AM
From: Larry Zenith	Respond to of 28311

Another thing about market cap: shares outstanding Jeff, Good point about valuation. I have something else that has been bothering me for a while: shares outstanding. You mentioned PCLN, so let's make a comparison: I am using information from Yahoo Finance, although we know that GNET has 42M shares outstanding, to be fair, I just quote directly from Yahoo, use 25.9M as shares outstanding. The numbers are in order of Market cap, shares outstanding, Float. GNET 2.19B 25.9M 18.4M ( share price 84 9/16 ) PCLN 14.8B 142.3M 10.0M ( share price 104 1/4 ) We know that market cap equals stock price times shares outstanding. In order to increase market cap, either increase share price or increase shares outstanding, or both. Of course, shares outstanding can not be increased. But look at PCLN's monster shares outstanding and paltry float, its float/outstanding ratio is 7%, while GNET's is 71%. Had GNET had same float/outstanding ratio as PCLN, (consider this as ghost shares nobody owns ) GNET would have had 262M shares outstanding ( 262M*7%=18.4M ), should have had a market cap 22B. How could investors ignore the fact that PCLN has huge number of shares outstanding, reward PCLN such a huge market cap? I have no idea. But just because of that, Jay Walker was vaulted to #35 of Forbes world's richest people list, one notch ahead of Jeff Bezos. Could you believe that? For Bezos, at least for past two years, he has suffered numerous humiliations, like Amazon.bomb in Barron's. Jay Walker just came from nowhere to jump to #35 within months. It is completely weird. My conclusion: either PCLN is way way way overvalued, or I hope that GNET is way waay waaay undervalued. What do you think? Larry #79