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

To: levy who wrote (11703)	9/1/1999 9:47:00 AM
From: Hawkmoon	Respond to of 28311

levy, As Jeff pointer out, the $6/share is based on fully diluted stock, most of which is still unconverted preferred held by Vulcan and PA. So when determining the cash basis for the company, it is not necessarily out of line to divide cash on hand by the currently outstanding stock to arrive at $9/share. Either way, GNET has a ton of cash just sitting there drawing what I hope is a high interest rate and they could probably use just the accrued annual interest alone to make some of their acquisitions.. :0) But eventually, GNET may be forced to spend heavily on advertising so that is where that cash hoard may come in especially handy. Regards, Ron

To: levy who wrote (11703)	9/1/1999 10:27:00 PM
From: Jeff Dryer	Read Replies (1) \| Respond to of 28311

levy, How can the stock market efficiently value companies relative to one another when everyone is using a different set of market cap numbers? With regard to mistakes: It depends on how you look at it... isn't finance always that way? <g> I focus on fully diluted shares as being most representative of a company's true valuation. Most investors (and I believe most Wall Street analysts) focus on outstanding shares instead of fully diluted shares... because fully diluted shares is more difficult to keep track of. The whole market cap game is kind of ridiculous... like a hide and seek game. Maybe each company should be required to report their market cap to the exchanges at the end of each closing day. We all know what the price per share is. Isn't the market cap just as important? I would say, market cap is even more important than the price per share... but most investors are usually in the dark when it comes to knowing what the current market caps are. Each company should report market cap on a daily basis... for it is the company that truly knows this data in real-time. In a previous message, I estimated Yahoo's cash/market cap ratio at 1.5%. I should have said 1.33% Broadcast.com acquisition adds a little less than $50 million cash to Yahoo's balance sheet, so Yahoo has about $600 million cash or about 2.16 times as much cash as Go2Net.