SI
SI
discoversearch

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 : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: investz who wrote (7564)11/7/1997 5:37:00 PM
From: Jan A. Van Hummel  Read Replies (1) | Respond to of 14577
 
Eric,

Think about it.

At the present time, the stock is at abt 1.5 times BV.

So for every $1 the company has in assets, the market values it
at $1.50.

Let's say the BV is $5 and the MV $7.5.

Would you rather see the company pay you $2 thereby reducing their MV
to $4.5 ($3 x 1.5)? You gain $2 in the settlement but lose $3 on the
stock value.

Or, while the suits continue, the company turns in a much better 4th qtr
and the market rewards them by valuing the stock at 2 x BV. Then, any payout
will hurt the shareholder even more than no payout.

This is kind of a simplistic approach because a) the lawyers will take
most of the proceeds (believe me), and b) the payout will be insignificant,
if there will be any.

Obviously, all bets are off when the company is going to tank, but I have
not seen any signs of that yet. If you do, let me know.

Just MHO

Jan A. Van Hummel



To: investz who wrote (7564)11/7/1997 8:16:00 PM
From: Adrian Wu  Read Replies (4) | Respond to of 14577
 
To Eric and all those rejoicing on the lawsuit: You will all lose even if the class action lawyers win. They will take at least 30% of the proceeds. Since you are still a shareholder, and the company's book value is down by x dollars, x being the payout plus legal defense fees, and only 70% of the payout goes to shareholders, you can see that in fact, the lawyers have taken 30% out of YOUR pocket.

Adrian


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News