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Microcap & Penny Stocks : WCAP - Winfield Capital: Insider buying -- Ignore unavailable to you. Want to Upgrade?

To: Rajiv who wrote (469)	3/17/1999 9:40:00 AM
From: Francois Goelo	Read Replies (1) \| Respond to of 1305

Rajiv, WCAP, earnings/capital appreciation and PE are very relevant... for the simple purpose of comparison with other Companies. On a punctual basis, (at a certain given point in time) there is no significant difference to the EPS, whether the holding is accounted for as capital appreciation or profit on sales of the holding. If the sale of the appreciated assets had occured, the EPS for the trailing 9 months would have been $4.58, which is staggering for a Company that traded at the time I bought at $9 5/8. The difference, of course, is that capital appreciation may rise or fall in line with the underlying asset, whereas the net profit on sale of asset is a fixed figure, it's the past. So, if you have faith in the potential appreciation of these underlying assets, as I have, you prefer the future, which is appreciating unrealized gains, rather than fixed realized profits. While I am not an accountant, I see that WCAP is allowed to treat its unrealized capital gains as actual EPS, so that must be an accepted and legal practice. Regards, F. Goelo + + +

To: Rajiv who wrote (469)	3/17/1999 2:10:00 PM
From: Rajiv	Respond to of 1305

A few years back, I was reading a major financial newspaper/newsletter from an Asian country. The cover page article was by some person who was attempting to present a case where he said mutual funds should trade at several multiples of their NAV. A few months later, the stock market in that country topped. The mutual funds started trading at steep discounts to their net asset values. Almost ten years later, the stock market indices are way off that peak. Draw your own conclusions. Regards. Rajiv