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Technology Stocks : SLH Corp. (SYNM) - From natural gas to crude oil -- Ignore unavailable to you. Want to Upgrade?

To: fred douglas liebling who wrote (122)	3/31/1998 8:27:00 AM
From: gmccon	Read Replies (2) \| Respond to of 281

I bought the other day at 26. What can we expect in the short term? Greg

To: fred douglas liebling who wrote (122)	3/31/1998 10:29:00 AM
From: Lord Smooth	Read Replies (3) \| Respond to of 281

Implied value of Syntroleum Market value of SLH Corp $315 million minus $50 million shareholder equity equals $265 million 5.95 mil shares outstanding that SLHO owns that is $44 1/2 per Syntroleum share. Therefore for the 13.04395 million Syntroleum shares outstanding that SLHO does not own, its market value is worth $580 million. SLHO will swap its shares for every share of Syntroleum. At $32 per share, SLHO will issue 18.125 million shares to acquire the remaining shares of Syntroleum. That is an exchange ratio of 1.39 SLHO shares for every Syntroleum share. Total SLHO shares outstanding following the merger: 18.125 + 9.86 equals 28.0 million. Implied market value of 100% Syntroleum at $44 1/2 per share and 19.0 million Syntroleum shares (5.95 + 13.04395): $845 million. SLHO share price after merger $845 million divided by 28 million shares: $30 Implied 12-month potential market value of Syntroleum competitor: Rentech (RNTK) $845 million. Divided by 40.0 million fully diluted RNTK shares outstanding equals a potential stock price of $21. RNTK's stock price today: $3. I assume, of course, that RNTK emulates Syntroleum, which is not a fact, but a hopeful expectation. Buy SLHO or RNTK? For you to decide... :) Schopenhauer