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Technology Stocks : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (416)	11/21/1998 8:42:00 PM
From: Kenneth Yeh	Read Replies (2) \| Respond to of 1634

So, of course, MALL is worth $0. Christian, MALL, with its $4.68 book value is worth $0 according to Tom...correct? So, that $24.75 per share MALL is really worth nothing. That entire value is based on UBID's potential IPO price? Second, it's not 3.2 million..its 0.72 x 4 million = 2.88 million shares of "potential" UBID shares. Third, WCAP owned a minority stake in COOL. There was no benefit of the IPO on WCAP shareholders. The comparison does not hold with MALL and UBID since MALL plans to distribute UBID shares to its shareholders. And MALL owns 100% of UBID whereas WCAP owned a very small stake in COOL. Fourth, MALL's core business can easily be priced at $14+ if compared to others in its sector (MWHS, etc). Keep in mind that there's only 10 million MALL shares and when comparing companies and valuations, we compare market caps; not just the price of the stock. Also, MALL really earned 11 cents last quarter since UBID's development costs will no longer be charged to MALL. Therefore, MALL itself deserves a higher valuation based on their 11 cent per share earnings last quarter. $14 a share for MALL is not unreasonable. MALL is currently trading at $24.75 so UBID is really worth. $10.75/0.72 = $14.93 per share. To put it bluntly, there's NO CHANCE IN HELL that UBID will open at 15 bucks on the day of the IPO. Good luck all. -Kenneth