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Technology Stocks : Hyperfeed Technologies, Inc. (HYPR) -- Ignore unavailable to you. Want to Upgrade?

To: ISIDE who wrote (565)	1/20/1999 11:10:00 AM
From: Oak Park Trader	Read Replies (2) \| Respond to of 2231

Let me try to answer the question by taking a crack at understanding how DBCC did their marketwatch.com deal. I would appreciate any feedback or corrections in case I am missing something. With DBCC/CBS IPO, DBCC's interest in MarketWatch.com (MKTW) went from 50% to 38%. There are 12 million shares of MKTW. The underwriter BT Alex Brown offered 2.75 million shares (or approximately 24% of the company) at $17/share. Both DBCC and CBS in effect each gave up 12% of their ownership at $17. The proceeds of these 2.75 million shares (approx $46 million) go to MKTW. Now DBCC owns 38% of MKTW, which is falling today (currently $85 and change). At this current price, the market cap of MKTW is around $1 billion. That means that DBCC's ownership in MKTW represents around $400 million right now. DBCC's market cap in Sept/Oct 98 (when the stock was $5) was approximately $160 million (32 million shares outstanding currently). So clearly the IPO initiative over the last couple months helped bring attention to the underlying value of DBCC's 50% ownership of MKTW. The reason DBCC stock spiked higher and then collapsed I think was attributed to the higher expectations of MKTW's market value (I heard people were expecting MKTW to go to $200). I think what these IPO's are showing is that the company going public should receive higher offering prices--in a sense it seems like MKTW lost out, offering shares @ $17 that are now $85. If PQT did an IPO with PCQuote.com, hopefully they would get a more reasonable initial offering price. Right now PCQuote's market cap is around $60 Million (including PICO debt conversion and other private secondary offering of 640K shares in Dec 98). PQT owns 100% of PCQuote.com. The million dollar question is how much is PCQuote.com worth? See my earlier post #544 for a brief discussion on how much PCQuote.com might be worth. Any feeback?