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

To: Paul Senior who wrote (27548)	9/26/2007 4:52:38 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78719

Added a bit to my small HTGC position. I see nowhere any comment about about prospects for HTGC given its announced sale of Sling Media. biz.yahoo.com I have to assume I'm missing some valuable information, and that possibly I'm very wrong on what's happening. What "seems" to be occurring is that venture fund HTGC is selling its holding of Sling Media for $380 Million. Okay that is in cash + EchoStar options, and that $380M is what somebody in management says the deal is worth. I don't know the cash/options ratio. (So I am missing some important info.) Nevertheless, ASSUMING Sling Media is totally owned by HTGC and that HTGC gets the money (i.e. Sling Media management has HTGC options or other incentives such that HTGC stockholders don't have to share the $380M with Sling Media management), then $380M is one heck of a lot of value for HTGC which has a market cap of just $430 Million (and $33M in debt, according to Yahoo). HTGC's website portfolio contains a surprisingly large portfolio of companies for such a small firm. I'll just guess and bet there could eventually be another pony in their pile: herculestech.com At current price, a buyer of HTGC stock gets HTGC management's access to a bunch of money (somewhere in that $380M), a swath of companies in HTGC's portfolio, and a current 9% dividend yield while waiting for something else to be monitized (another pony?). Possibly I'm missing something --- some significant info. to obviate some of my assumptions about cash inflows or prospects or something. I'll assume the $1.20 dividend might be solid and maybe provide a margin of safety though.