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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?

To: RikRichter who wrote (1112)	7/31/1998 10:41:00 AM
From: lazarre	Respond to of 2752

Elliot, I think burgerking also thinks Maxim's is just another hamburger joint. L

To: RikRichter who wrote (1112)	7/31/1998 10:19:00 PM
From: burgerking	Respond to of 2752

No disagreement from me! I stated the valuation was fair at 6 1/2 and rated it a "buy." At the current price of 5 7/8, I'd say it's a "strong buy" In fact, I bought some myself during the sell-off ;-) Trying to predict the aftermarket price of DRIV is difficult. (Even for the professional analysts! Just look at the BCST fiasco.) Much will depend on the market's intraday performance on the first day of trading and whether the market continues to rotate away from internet stocks. As a rough guess, I would say that SWNT is a "lower bounds." I also agree that DRIV is more attractive than COOL and SWNT. Today's pricing of COOL may give us a better lower limit which is $20 1/2. However, I don't think we've seen bottom for COOL. An upper limit may be INKT which started around $36 and doubled with strong analyst recommendations, or BCST. Both are now trading in the 50's. The value of TSQD without its DRIV holdings is somewhere between $3 and $0.04. $3 comes from the trading price prior to DRIV's IPO announcement. However, this value includes the intrinsic value of the 3.2 M shares in DRIV and their $2.6M cash value. The $0.04 is the value of the company's assets minus the value of its DRIV stock which comes out to 0.5M divided by 10.9M shares. This can grossly underestimate the stock's worth, since much of a company's value is from intangibles such as branding. Using these numbers, here are some potential valuations of TQSD after DRIV begins trading. TSQD-low uses the intrinsic value of $0.04 per share. TSQD-high uses the intrinsic value of $3 per share. As before, I'm using 3.2M shares of DRIV and 10.9M outstanding shares of TQSD (1 point DRIV = .293 TQSD) DRIV TQSD-low TQSD-high $15 $4.44 $7.40 $20 $5.91 $8.87 $25 $7.38 $10.34 $30 $8.85 $11.81 $35 $10.32 $13.31 $40 $11.79 $14.78 $45 $13.26 $16.25 $50 $14.73 $17.72 $55 $16.20 $19.19 As I stated in my previous post, it also assumes that TQSD management will in some way return 100% of the proceeds to its shareholders. At the end of trading, I think TQSD was oversold. I won't even try to guess DRIV's aftermarket price except that it's likely to be $20-$50. However, the above table suggests that TQSD at 5 7/8 is a pretty good bargain!