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Non-Tech : Action Performance....ACTN -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (242)	11/17/1999 8:36:00 PM
From: BWAC	Read Replies (1) \| Respond to of 278

More on goracing.com from the 10Q: (7) SUBSEQUENT EVENTS On July 6, 1999, the Company's wholly owned subsidiary goracing.com, inc. filed a registration statement with the Securities and Exchange Commission for an initial public offering of its Class A common stock. goracing.com, inc. plans to raise approximately $80.0 million in the offering and to use the proceeds to (i) promote the goracing network and expand sales and marketing activities; (ii) add online content, community features, and e-commerce opportunities to its network; (iii) hire management and other personnel; (iv) enhance its technology, software, and infrastructure; (v) enter into strategic alliances and acquisitions; (vi) repay to the Company $2.0 million of certain incurred costs; and (vii) provide working capital. The Company will continue to own more than 80% of the shares of goracing.com, inc. after the offering. ________________________________________________________ So ACTN wants to raise $80 million for the sale of a 20% interest in goracing.com. It will still own the other 80%. $80 Million/20% = a total market cap for go racing of $400 Million. Assuming it remains at the offering price and does not rise or fall. What is the current market cap for ACTN? I show 17 million shares outstanding at a price of $17 = $289 Million So a $289 million ACTN will own 80% of something possibly valued at $400 million? Plus the rest of the businesses ACTN is involved in? Throw in a PE under 10 and: Sounds like a price of $34 on ACTN should be seen very soon. Goracing, go ACTN, go Mark Martin, just go go go. What in the heck are the analyst smoking not to see the value in this one?