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Technology Stocks : UCOMA UnitedGlobalCom -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (280)	2/14/1999 1:02:00 AM
From: Mad2	Read Replies (2) \| Respond to of 489

C, I agree on you description of valuation mismatch, however lets admit UBID is likely one of the I-nets that won't make it with their current business model. However I'd argue that the reason for the mismatch with MALL/UBID has to do with UBID being overvalued and long term investors reluctance to price UBID into MALL shares. Additionally I suspect when the UBID shares are distributed to MALL holders, rapidly increasing the float, this will bring down the "inflated value" UBID. In the case of UPCOY if you accept that the offer price ($32) represents a reasonable value for the business, than as short term traders roll out UIHIA should migrate to reflect that value ($61/share). When this will happen I don't know, however I see upside in UIHIA. C, the question here with UIHIA/UPCOY is a question of timing and when the gap will close (ie will UPCOY go to 10-20 or will UIHIA go up). Mismatches can be interesting, as in the case of CMGI which tades at 4 times the underlying value of the stocks it holds. That's quite a premium, but goes to show that the disparity can go either way and