Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: D. RUTTER who wrote (2488)	12/17/1998 9:41:00 AM
From: C. McD	Read Replies (2) \| Respond to of 2752

Good News DR - DRIV to sell software for WAL-MART! From the Minn. StarTribune: www2.startribune.com TSQD's trading ratio may get a big boost today. TSQD always does better when DRIV makes a run. BTW, now that TSQD has sold 200,000 DRIV shares (and exercised $0.07 of the $1.00 option according to management), its a virtual lock that TSQD will turn a paper profit Q1. I expected TSQD to be at ~$0.01 per share if nothing bad happened. From selling 200,000 shares at $23.5 each, they received $4.7 million, then after paying ~30% in taxes, the company received ~$3.3 million in new cash. That's +$0.30 per share. Unless they don't count this as a special event that affects earnings for the Q, TSQD will be sitting pretty. Also, the company's remaining 3M shares of DRIV are now at a ratio of 0.2727 (27%) per the 11M shares of TSQD. Under a worst case situation, TSQD gets cash for all their shares, then pays 30% tax, then gives cash dividend to us, we pay ~39% tax. And for good measure, assume 15,000,000 fully diluted shares - don;t ask me where I got it, its VERY conservative. The ratio is then: (3,000,000/15,000,000).7/61 = 0.0854 HOWEVER, this ain't gonna happen. IMHO, TSQD will sell only the number of DRIV shares they can effectively use NOW. If they don't need the extra money, the best way to increase shareholder value is obviously to pass DRIV shares on as a stock dividend. I believe TSQD may not sell another DRIV share, my MOST LIKELY situation is: (3,000,000/11,000,000) = 0.2727 passed on to shareholder The shareholder pays the only tax when they sell the DRIV. If you wait, as I will, for > 12 months, tax can be ~20%, so ratio would be (.2727)(.8) = 0.2181. This ratio is more than double the present range of ~10%. I believe, based on my conversations and research of TSQD, that this will be closer to the real trading ratio, AND, when all is said and done, you still keep the TSQD shares which I also believe will have some intrinsic value. My $0.02. PLEASE - do your own research.