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Microcap & Penny Stocks : SHAL -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (22)	3/8/1999 12:20:00 AM
From: Toby Zidle	Read Replies (1) \| Respond to of 70

I have to correct your math, Dave. You said: SO HOW DO YOU VALUE THIS COMPANY? Just like CMGI, one way is to figure out what the value is from what they own of the companies they bring public. If SolutionNet is valued at $7.00 and they retain 40% then that one company has a value of $2.80 to SHAL shareholders. This is true ONLY if the same number of shares are issued for SolutinNet as there are shares in SHAL. Think in terms of market value. If there are half the number of shares issued in SolNet, then the market cap value is obviously cut in half. SHAL's 40% is worth only half and each shareholders portion is valued only at half per share ($1.40/share). Similarly, if there are twice as many shares of SolNet as there are in SHAL, each shareholders portion would become worth $5.60. So, Dave, we don't have the critical information, the ratio of the number of SolNet shares to SHAL shares. The same problem affects the value computation for companies A, B, C, And D that you refer to later in your posting. The resultant conclusion is that without further data we just can't know at this time how to value SHAL.

To: Dave Gore who wrote (22)	3/13/1999 12:27:00 PM
From: gizmo&jack	Read Replies (1) \| Respond to of 70

I don't have a strong opinion on this company one way or the other, but some of the analysis here just doesn't make any sense: (1) You can't simply take a percentage of the IPO price of the SIPODs and say that value can be transferred to SHAL. You need to know the shares outstanding and total market value of a SIPOD and a percentage of that can be translated into SHAL market value and then should be divided by the number of SHAL shares for the appropriate value added to SHAL's share price. (2) SHAL should not be compared to CMGI just because it has the same business model. It is ridiulous. These companies values should be based upon their underlying holdings. These holdings are what should be valued. CMGI holds Lycos, Geocities, and numerous other huge and potentially huge web presences. I don't even really understand how to value SHAL's SIPOD'S and it doesn't seem to concern many of the investors here how to do that either. A serious danger sign.