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Gold/Mining/Energy : TS TELECOM (www.tstelecom.com): ASPIRING TELECO -- Ignore unavailable to you. Want to Upgrade?

To: Tomsr who wrote (957)	11/26/1999 12:55:00 AM
From: speculatingvalue	Read Replies (2) \| Respond to of 1762

The prospectus doesn't seem to be listed on the GEM site any more, but the link is: hkgem.com It explains the structure. Basically, TOM-ASE is a holding company which owns TSI, a holding company in Hong Kong. All the assets fall under TSI. Even though TOM is public, TSI, the 100% subsidiary of TOM, is having an IPO. 30% of TSI is going to the new investors, 64% is going to TOM and the insiders are getting 6% for free (rip off). If you take TOM's 64%, multiply it by the IPO price of HK $1.50 and divide by the number of TOM shares, it works out that each share of TOM owns $2.65 CDN of TSI. IE. TOM should be at least $2.65 (although some have argued that holding companies trade at a discount, I think it should trade at a premium). If the IPO next Thursday is successful and runs, TOM could go much higher than $2.65. There is no sense speculating as it depends on the enthusiasm of the HK investors.