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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: muwis123 who wrote (22374)	10/30/2005 11:57:59 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78667

IPCR: I've had the stock since '99. I sold all my shares off in late Aug. & early Sept. Too tough for me to figure out what's happening with their reinsurance exposures and possible problems. If I look at Yahoo, I see a company with no long term debt, selling 1.16x stated book. The stock is at a three or four year low now. Of all the times to issue stock, they have to issue stock now? I presume that it is so - they must be in trouble and they have to. Looks like 12M+ shares to be issued for a company with 48M out. That's a substantial dilution, imo. For me, I have no sense now of what the price/value proposition might be. I presume the stock is worth more than book value. But I can't say what book value is at this time with all the claims they've got and might be getting. And in previous years, the stock has traded below book value. OTOH, somebody will be taking 12 million shares, so these folks who are buying must have some confidence in IPCR's value and/or its future. I wonder at what price the stock will be offered to them. Less than current price, I would guess. Jmo, I could be wrong.