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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (25692)	3/31/1999 10:02:00 AM
From: Smilodon	Read Replies (1) \| Respond to of 122087

Actually, ZDZ does have a big market cap relative to ZD. I know my 85% of ZDZ stock price seems crude, but it actually works OK. But, lets do it the right way: ZD has 103 million shares at $27. If we assume ZD without ZDZ is worth $12, we get 12103, or $1.2 billion. ZD will retain 61 million of the 71 million ZDZ shares. So, if ZDZ is priced at $19, the value of ZD's share of ZDZ is 1961 million = $1.2 billion. Thus the combined value is 1.2 + 1.2 = 2.4 Billion. Divide by 103 million shares and you get $23 for ZD. If ZDZ goes on a big run, ZD could move up as well on a legitimate arbitrage.