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Technology Stocks : RRRR: Rare Medium Group (soon to be) formerly ICC -- Ignore unavailable to you. Want to Upgrade?

To: Anaxagoras who wrote (304)	4/23/1999 9:31:00 AM
From: Louis Riley	Respond to of 1150

Here's the way I see it. Assume Apollo exercises its options and pays another $75MM for another 15% of RRRR. That is $150MM for 40%, and values the company at $375MM. Yet at $17 3/4 the company's market cap is $559MM. Either Leon Black is overpaying or the stock is still cheap. And Black made his fortune buying junk bonds and real estate on the cheap after he left Drexel as head of M&A. I just don't think taking the other side of his trade is going to make you any money other than for a quick scalp back to the breakout level, if that. Good luck.