Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Hyperfeed Technologies, Inc. (HYPR) -- Ignore unavailable to you. Want to Upgrade?

To: The Stock Doctor who wrote (2124)	10/4/1999 2:14:00 PM
From: Glenn Petersen	Respond to of 2231

PCQT lowers the range to $8 to $10 per share and reduces the number of shares being sold by the company to 4.5 MM. hoovershbn.newsalert.com PCQuote.com Again Lowers IPO, Sees Pricing 5M Shs In $8-$10 Range Newstraders - October 04, 1999 11:18 (NewsTraders.com)-- Internet-based stock quote vendor PCQuote.com has once again adjusted the terms of its pending initial public offering, this time lowering both the size and expected per-share price range, according to amended regulatory documents released by the SEC this morning. The Chicago-based company now plans to offer 4.5 million shares in the $8-to-$10 range, which is lower than the 5.8 million shares and $11-to-$13 per-share zone previously listed in a Sept. 28 filing. Hyperfeed Technologies (HYPR), the company's parent, also scaled back the number of shares it will put forward to the public to 500,000, down from an earlier plan of selling 1.95 million. When PCQuote originally filed to go public on June 9, it hoped to sell the shares in the $12-to-$14 range. The lower price range has pushed the offering's estimated net proceeds down to $36.3 million from an earlier hope of generating $63.3 million. The company plans to use the funds for marketing, acquisition of additional content and the purchase of new systems. HyperFeed will retain a 64.5% interest in PCQuote.com after the stock sale, which is considerably higher than the 49.9% stake listed in earlier filings. PCQuote's investor service offerings consist of two sites, www.pcquote.com a free service, and fee-based marketsmart-real.pcquote.com, as well as two Internet enabled desktop applications PCQuote 6.0 RealTick and PCQuote Orbit. In addition to stock quotes, the sites provide business news and research tools. For the six months ended June 30, the company posted a net loss of $2.0 million on $6.9 million in revenues. Prudential Securities is leading the underwriting team. IPO Expectations: Price per share: $8 to $10 Shares being offered: 5 million common (500,000 shares are by Hyperfeed Tech) Shares to be outstanding: 14.4 million common Company location: Chicago, Ill. Exchange/Symbol: Nasdaq/PCQT Underwriter(s): Prudential Securities; U.S. Bancorp Piper Jaffray; FAC/Equities; E*Offering; Commerbank Capital Markets Corp.; Prudentialsecurities.com Copyright 1999 NewsTraders Inc. All Rights Reserved 12:09 Monday, October 04, 1999

To: The Stock Doctor who wrote (2124)	10/12/1999 11:05:00 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 2231

The word is that Prudential is having difficulty selling the PCQT deal to institutions. Given the repeated delays for the IPO and the downward revision on the pricing, I do not think that it is going to meet with a positive reception. I do think, however, that it may offer a trading opportunity in the after market. I thought that I might update my back door analysis for HYPR. As of July 28, 1999, HYPR had 15,000,671 common shares outstanding. There were also preferred shares outstanding that are convertible into a minimum of 4,786,600 common shares. Additionally, there were options and warrants on 6,436,694 shares at an average price of $1.70 per share. If these options are exercised and the proceeds are used to purchase shares on the open market at the current price of 7 3/8, this will result in additional net dilution of 4,952,981 common shares. If you add the current number of common shares outstanding and the potential dilution from the preferred stock and the various options, there are approximately 24,740,252 common shares. HYPR will be offering 500,000 of its PCQT shares in the IPO, generating, at an offering price of $8 per share, approximately $4.0 MM in cash, or $.16 per share. HYPR will be retaining 9,300,000 shares of PCQT. Assuming a price of $8 per share, these shares will have a value of approximately $74.4 MM. Discount this amount by 40% for tax and liquidity considerations and you are left with $44.64 MM, or $1.80 per HYPR share. Subtract the $1.80 and the $.16 in cash from $7.375, the current price of HYPR, and the remainder of HYPR is currently being valued at $5.41 per share. Assumed that PCQT pops 50% and the remainder of Hyperfeed is currently being valued at approximately $4.51 per share. If HYPR shows any sign of life pre-IPO, it should probably be shorted. JMHO.