To: M. Frank Greiffenstein who wrote (2441 ) 11/20/1998 7:59:00 PM From: Ron Harvey Respond to of 2752
It's true that fantasizing about unknown potential can drive a stock well beyond its worth. Consider the potential of the following situation, which is analogous to the early TSQD/DRIV relationship: On this or the DRIV board someone posted the news item that DRIV had just signed up Anything Internet. Anything Internet will shortly (probably Dec.) become a publicly traded company on the BB. Here's a condensed statement from the CEO of BANY, a company selling for $.50 and which owns 33% of Anything Internet "On September 2, 1998, Banyan announced it had acquired 1 million shares of Common Stock, a 33% minority interest, in Anything Internet. Anything Internet is a privately held computer retailer specializing in Internet-only sales of computer hardware, software and peripheral products. Sales at Anything Internet have grown from zero to over $300,000 a month in less than one year. Anything Internet anticipates continued strong growth in revenues well into the foreseeable future. . . . Within the next few weeks Anything Internet will submit the necessary documents and applications to market makers and the National Association of Securities Dealers (NASD) to authorize trading of its Common Stock on the OTC Bulletin Board. At the time its stock commences trading, Anything Internet will have approximately 3 million shares of Common Stock issued and outstanding. Anything Internet's peer companies that are currently publicly traded are valued, on average, at about 12 times gross annual revenues. If Anything Internet trades at just half of that valuation, Banyan would have a book value notably higher than current market prices. Additionally, Anything Internet is proving to be an excellent source of sales for Banyan's products to end consumers and businesses." BANY could be one of those guys that soars when publicity about Anything Internet's public debut generates interest. And they have a PR firm with a strong self-interest in moving the stock. (Having bought some today, I, of course, would be happy to see the stock move.) The last few months of news items make for interesting reading, I think.