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 : Phoenix Technologies (PTEC) -- Ignore unavailable to you. Want to Upgrade?

To: John B. Dillon who wrote (3522)	10/8/1999 12:35:00 AM
From: Mark Brophy	Respond to of 3624

I find it very amusing. Phoenix went down on the day they announced the best news in a year. They're finally getting serious about monetizing their best asset. Al Sisto came from RSA, which spun out Verisign. When I bought RSA a few months ago at 21, their cash (mostly from the Verisign IPO and secondary) and 4% remaining Verisign stake alone were worth as much as the market cap of the entire company. Jules Garfunkel owns IDT, which spun out Net2Phone in an IPO recently. NTOP now has a market cap greater than IDTC. I own shares of S3, which has shares of UMC that are worth $10/share and $4 cash. S3 is selling at 10 1/4. The stock market makes no sense, so I think that business schools should stop teaching the obviously discredited efficient market theory. Phoenix might have a problem finding a buyer for the SIP group. Mentor would be the obvious candidate, but they also have a very low valuation. There are other SIP companies that have a high valuation (Rambus, MIPS, ARM, DSP Group), but all of them are specialized in other areas. The investment bankers will be earning their fee if they can find a buyer. The frothy IPO market is the best bet. If they can continue 30-50% growth for the next year or two, that ought to good enough to go public. And morale will be higher when the employees know there's a possibility of a big score. The market might even be frothy enough to move up the timetable.