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Technology Stocks : TouchStone S/W (TSSW) -- Ignore unavailable to you. Want to Upgrade?

To: robbie_nw who wrote (3205)	3/25/2000 8:44:00 AM
From: David Alan Cook	Read Replies (2) \| Respond to of 3627

ahhto2, TSSW will announce each IPO position they have when the company goes public with its IPO. You must not be counting the 9 million the company will receive from its sale of eSupport to PTEK if you assume the company is trading below its NAV. The company has stated in a prior release that the majority of the company's preIPO positions will go public this year. I will list the NAV of the 3 announced positions, the % return received on those investments, the % return that TSSW would receive on this cash using the prior two investments as a guide, the cash the company will receive from the sales of Esupport and the % return the company will receive using the same prior rate of return from its two prior investments. Doing so would not double count the company's investments. I disagree with your statement that company's that are able to invest in PreIpo companies should not receive a higher growth rate than mutual fund companies that can not. The major difference is that Internet Incubator companies reinvest at very favorable cost basis and mutual funds invest in stock at current market prices. When TSSW sales PRTS, the company can reinvest the 2.5 million in other IPO companies at 25% or better cost basis. When a mutual fund sales shares, they will be investing at the current 100% market price. IMO that is why CMGI and other internet incubator companies trade at very high multiples to NAV. Industry range in Razo report was from 3 to 8 times. DC