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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Trader J who wrote (13043)	11/18/1998 10:40:00 PM
From: Kevin McKenzie	Respond to of 119973

Net stocks are not about valuation, not even in the slightest. You're right, of course. Ebay, a $6 billion dollar market cap for a stock with 20 or so million in revenue. The list of absurdities are as long as the list of internet stocks. I doubt that many will be running these same numbers. I disagree with you on this. The U bid IPO began, if effect, today. Since Mall will own 80% of U Bid, the market will determine U Bid's "value" long before U Bid officially IPO's. Every trader knows that one quick way to make huge returns is to obtain shares of an internet IPO at the offering price, then sell into the opening day madness. Most people don't get the opportunity to buy shares of a hyped IPO at the offering price. This is the closest most of us can get. I think a great many people will be calculating where UBid will open, and reversing that number into Mall's price. Of course there are dangers. For example the DRIV/TSQD IPO. Many thought that since TSQD owned 19% of DRIV, and DRIV was an internet IPO, that one could simply buy TSQD pre-IPO and watch it soar. But DRIV opened flat and sank below the initial offering price on the first day. Also, TSQD's precise ownership in DRIV became less clear as time went on. Anyway, it is awfully fun to watch (and sometimes participate in) this insanity. Another irony is that UBid's revenue contribution represent such a tiny fraction of Mall's total revenues, yet UBid's IPO is supposedly going to unlock so much more investor "value". If you think about it, why is UBid worth anymore on it's own than it is worth as part of Mall? Mall owns 100% of UBid, so if UBid is worth $500 million, then why isn't that value already priced into Mall? You're right TJ, it's absurd. Still, I wish I owned 1,000 shares at 22.