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

To: Susan G who wrote (11701)	9/1/1999 5:45:00 AM
From: levy	Read Replies (2) \| Respond to of 28311

A highschool math question for those considering purchase of GNET. Using tycoon Jeff D numbers, that means the Yahoo's have 675 million in cash compared to 278 million for the Go2Nets. That is a ratio of 675/278 or about 2.4 . Comparing that to market cap ratio, Yahoo/Go2Nets or 44.5/2.5 or 17.8. According to this data the Yahoo's are worth 17.8 times as much as the Go2Nets but only have 2.4 times as much cash. Assuming all other factors being equal for the purposes of this analysis (just a very small assumption) we can see that the Go2Nets market value based on cash hord should be much higher. Determine what Go2Nets current stock price should be if market caps were equal using the data above and Jeff D figures (see below). I didn't know Steve Harmon ever made mistakes ....check the difference between these two statements. Jeff D recent SI GNET post Message 11122315 Assuming $278 million in cash, Go2Net has $6.47 cash per fully diluted share (fully diluted shares include convertible preferred shares and employee options). Cash represents about 10% of Go2Net's fully diluted market capitalization which is about $2.78 billion. Steve Harmon siliconinvestor.com on a pure cash-per-share basis of the top 10 Web sites, Go2Net (NASDAQ:GNET) boasts $9.63 per share, aided by its smallish number of shares outstanding vs. its peers. Said another way, $50 of effective value per share trades along with this cash stash for GNET. That means most of the investors probably haven't valued GNET on an enterprise-value basis; they forget the cash, some $278 million or 16 percent of GNET's total market capitalization.