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Technology Stocks : Comdisco, Inc. (NYSE: CDO) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (263)	12/11/1999 8:22:00 AM
From: Manzanillo	Read Replies (1) \| Respond to of 689

CDO recommended in Barron's CDO is one of the stocks recommended in an interview with two fund managers in today's Barron's. It should help the stock get close to its old high of 30 7/8 next week: <<Q: How about one more quick one? Schwartz: Comdisco is a company we've made money on a couple of times this year. We played it earlier in the year when the stock was trading around $15-$16 a share. They own a company called Prism, whose product is called Red. Red is a DSL Internet-access provider. Here we are, buying a company that is going to earn $1.25 next year, a solid cash-cow business, for $15 a share. We really thought that if anything was built in for Red it was maybe $1 or so a share. The market started to wake up and the stock rose 15 points, and we sold the stock at a little over 30. But since then, the stock has come in. People got to understand what is there, but they have been waiting for management to act on it. The stock drifted back down to 20, which is where we re-established a position. Management owns a lot of stock. They all bought stock at the $20 range. You have three businesses here. You've got the core computer-leasing business, a cash cow, which is going to earn probably 90 cents a share in 2000. We think that business is worth at least $15 a share in value. You've then got Prism. We expect an IPO filing any day now, as well as a new CEO. We think it will probably go public somewhere around $1.5 billion, maybe trade at $2 billion. There's another $13 a share. And then you have the ventures business. When they help a lot of these companies start up and lease equipment to them, part of the time they take payment in warrants and things like that in a lot of these Internet startups. So they've built up this massive portfolio of Internet companies. That business, marked to market, now is probably worth over $1 billion, which is seven or eight bucks a share. So you add together the pieces and you have something in the mid- to high 30s for Comdisco.>>