Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KevRupert who wrote (491)	5/16/2000 2:08:00 PM
From: Bosco	Read Replies (1) \| Respond to of 689

Hi advalorem - Regarding PRISM, the only valuation model available to us is the 1% stake of PRISM from NT [and WCG each] for $10MM a few months ago. So, it was worth $1B in a biz-to-biz arrangement. Since then, more infrastructures and POPs are added. There is a caveat though. Obviously, NT's investment has other benefits, like PRISM buying NT gears. However, this is a pre ipo value. I'd like to think it should worth a lot more if it is valued as a public company. Since that time, a lot of things have happened. Its peers like COVD and RBAK have come down quite a lot. COVD cap is ~3B and RBAK ~10B. Conservative, I like to tag PRISM at $2B. That leaves CDOV and CDO core biz at $2.6B. CMGI, ICGE and SFE caps are 18B, 9B and 5B respectively. Throughout these years, CDO has spent about 1.7B in venture capital, so, even if we put in a 2x, i.e., 3.4B, we come to a negative valuation for CDO core biz, which in themselves are hugely profitable cash cow. I understand the above is a bit amateurish, but quite conservative, IMHO. One can say why this is not reflected in the market, to which I have no answer. So, yes, it has been tough, but I am hopeful as long as she doesn't breach 28! fingers crossed :)! best, Bosco