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 : WCAP - Winfield Capital: Insider buying -- Ignore unavailable to you. Want to Upgrade?

To: astyanax who wrote (554)	3/26/1999 8:45:00 AM
From: David Wiz	Read Replies (1) \| Respond to of 1305

>>Here's my dumb question of the day (until I plow through their financials to figure it out). Why is WCAP's P/E ratio so extraordinarily low<< The PE's of these stocks are meaningless because they can go way up and down based on sales of their holdings.

To: astyanax who wrote (554)	3/26/1999 10:04:00 AM
From: Marconi	Respond to of 1305

Hello Netconductor: That 3-4 'P/E' is based on unrealized gains in COOL. Their other operations are very marginal. Now if WCAP could regularly make business at realizing gains in a continued stream of deals, then P/E would be more comparable to the conventional concept of P/E. I think it was Mr. Tom Hua (I hope I recall the spelling--apologies if I failed) that noted the COOL position of WCAP was recognized for the books only after the lockup period and then was also discounted by 30% or so from market but the convention characteristic of closed end funds (that liquidating the position as a significant holder --around 5-6% for WCAP I think--could depress the stock price, hence the discount). I hope that helps perspectives. WCAP is more like a publicly traded VC account. The wonderment to me is how WCAP is able to get in on those dealings. It strikes me as very unusual, almost strangeness, which could be likeable if it continues, but confuses me for the time being. Who are these guys??? Best regards, m