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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Black-Scholes who wrote (47110)	10/29/1999 8:02:00 PM
From: coopie	Read Replies (5) \| Respond to of 50808

"Guys, it's just plain futile to try and rationalize the CURRENT market valuation for CUBE's semi division." That part is easy -- it is $20 to $22 per current share. The hard part is determining the tax effect. If C-semi is sold (not likely) then the company pays the tax, and you receive the after tax (net) amount. If C-semi is spun, then you pay the tax on the value. The company tax rate can be estimated at approx. 33%, so if sold you receive 2/3rds of say $21, or $14 per share. If spun, it is your tax rate that comes into play, and there I have no guess. The point here, again, is to value C-semi net (after tax). Hope this helps folks. I would also appreciate feedback from the finance types out there -- John? Good Luck.