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

To: Top Jim who wrote (873)	4/19/1999 12:43:00 PM
From: michel petit	Respond to of 1305

LPGLY up ,WCAP and CMGI down.

To: Top Jim who wrote (873)	4/19/1999 1:12:00 PM
From: Tom Hua	Read Replies (3) \| Respond to of 1305

TJ, here's the analysis. First of all, some background info: 1. The main reason WCAP recorded a 30% discount of unrealized gain/loss is because of tax issues. When they liquidate their holdings, the realized gains are subjected to a 38% tax rate, 800 basis points higher than the discount, as WCAP doesn't have much of an accumulated deficit to offset gains. 2. The unrealized gains/losses are computed based on the closing price of the last day in the quarter. 3. A 30% discount is taken for unrealized gains/losses on the balance sheet. Taxes are not computed for unrealized gains/losses. 4. COOL closed at 27 1/2 on 12/31/98, at 19 3/4 on 3/31/99. 5. Losses from operations are about $0.06/sh. If you punch in the numbers, you'll see that WCAP will report a loss of $1.62 fully diluted, loss of $1.43 basic for the quarter ended 3/31. I chose the midpoint of about $1.50. Using the same method, you can see that WCAP will also report a loss for the current quarter unless COOL closes above $20 on 6/30. As for COOL has been to $45+. And it has been to 5 3/4 too. For the year, many net stocks that I track have doubled, tripled, or more, but COOL lost almost half its value. There's a higher chance that COOL goes back to single digits than making new high. Regards, Tom