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

To: D. RUTTER who wrote (2478)	12/2/1998 8:37:00 AM
From: C. McD	Read Replies (2) \| Respond to of 2752

similarities/differences between TSQD/DRIV and BANY/Anything Internet IPO I spent an hour or so reading over the recent BANY PRs, and I found that it has alot in common w/ BANY, and some differences, both good and bad: BANY bought 33% of the 3,000,000 Anything Internet shares expected to be available in an IPO in the next couple weeks (final papers to be submitted to NASD early next week, should allow IPO to go within a couple weeks after that). BANY obtained the shares through a creative stock swap, unlike TSQD which had inside connections with DRIV. BANY does have a working relationship with AI, who sells BANY's product (Double Shell computer cases) on the internet. AI will be a BB:OTC IPO, I have never witnessed one of these before (should I be scared). BANY business is less flashy than AI (like TSQD), but appears to be turning around, expects to have a great 4Q. Recent deal to sell cases for Dell portables and to sell over Ingram Micro (heavy hitter) seem legit. They are in the process of filing all their SEC statements and making audit records for last two years available. Genuinely seem interested in growing, not just hyping. Apparently they fell victim to an illegal short selling operation awhile back that ran their price down. They won a recent court case related to that matter which may be providing additional momentum right now. BANY has 9,173,199 shares, and they will give 200,000 of their AI shares as a dividend to shareholders on record Nov. 3, ~1 share AI for every 45 shares of BANY - delivered on Dec. 7 (sorry we missed that one). Some who will receive the dividend are already talking about selling their shares prior to the IPO. The remaining 800,000 shares will stay with BANY. BANY folks are saying their business has a value of $.50, yeah right. It has traded as low as $.15, and as everyone who follows TSQD knows, when a BB stock is being traded based on another stocks IPO, that IS its whole value. So, the 800K shares distributed over 9M BANY shares is a ratio of 0.0872 to the price AI trades at. TSQD has traded at about half the expected ratio (or less) as a risk-based discount factor, but we'll let BANY determine this on its own. The only thing I've seen on AI revenue is that they are making $300,000 per month. If you conservatively say they'll do that next year, with a modest growth factor, they could earn between $3.6M to perhaps $5 million (pure guess). Stocks similar to AI are assumed to be trading at ~12X next years earnings, so AI may price out as high as $14.40, but could start out at about half that ($7.2). BANY is presently .74 X .82 So, BANY could be (.0872*7.2)= $0.63 if the IPO goes flat, or $1.25 if things go as expected (just like TSQD, right;). I kinda get the feeling people are jumping on right now because AI has gotten good PR, and they expect it to take off like other internet IPOs. They story is a good one, lots of people getting interested, but if BANY gets above $1.5, I (personally) would equate that to TSQD = $7 - time to sell! What happens with BB:OTC IPOs anyway. That's the big question. Will any credible media sources pick it up? If they do, with this small float, something explosive could happen. If TSQD is a major risk, BANY is a five star General risk! Big rewards, big losses, in a heart beat. If TSQD wasn't enough for you, you may want to check this one out. I will not post about BANY again on this board, my next post will be on the BANY board, so if you have any comments (flames), please post them there. Apparently BANY has a long time loyal following who has toured the company in Colorado Springs, and interacts almost daily with the management and IR/PR guy (Sitra?). I expect they'll find many flaws in my quick and dirty analysis, but that's what makes SI so fun. - See you over at BANY!