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

To: jan m. who wrote (1136)	7/31/1998 11:53:00 AM
From: .com	Read Replies (2) \| Respond to of 2752

from briefing.com: 11:45 ET ****** TODAY'S HOT IPO: Traders have been driving themselves crazy attempting to guess just how high shares of online computer hardware and software retailer Cyberian Outpost (COOL) will fly on its first day of trading. At this point, all that anyone knows is that the deal is going to be hot, as the shares priced last night at $18, well above the initial $13 to $15 range. But there is more to this deal than it simply being the next on a long list of high-rising Internet initial public offerings. As we reported Monday on the "In Play" page (when the stock was trading at $6.50 a share), Winfield Capital Corp. (WCAP 11 1/8 +2 7/32) holds 1.7 million shares of Cyberian Outpost. Based on anticipation that COOL would shoot out the gates, earlier this week traders ran up Winfield shares to $12.75, up 96% from the level traded when we first reported the connection and up almost 2000% (yes two thousand percent) from the stock's 52-week low of $0.625 a share. Assuming that COOL shares open trading today at $18 and go no higher (which is very unlikely), WCAP's stake in the company would be worth $30.60 million, 20 times more than WCAP's full year 1997 revenues of $1.4 million. With 5 million WCAP shares outstanding, that $30.60 million stake would translate to approximately $6.12 in WCAP book value (before taxes). Of course, if COOL doubles to $36... well you can do the math. WCAP has been a great way for individual investors to get in on an Internet IPO. But, as the chart indicates, almost all of WCAP's stock price is based on its affiliation with Cyberian Outpost. Without Cyberian, WCAP is a $2 stock, at most. Specifically, WCAP is an investment company which uses funds borrowed from the Small Business Administration, together with its own capital, to provide loans and to make equity investments in independently owned companies. As of June 22, WCAP had three full-time employees (its CEO, a COO, and a secretary). Other than Cyberian Outpost, WCAP's investment portfolio includes names like Improved Drinking Water & Pool Co, Bob's Auto Body Shop, and NAI Technologies (which is a publicly-traded company "NATL"). By the way, WCAP shares have started to take off again, now trading at 12 1/2, up 40% on the session. We would expect COOL shares to open for Nasdaq trading within the next hour or so.