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Technology Stocks : ITURF Inc. ( NASDAQ:TURF ) -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (253)	4/28/1999 10:00:00 AM
From: Jason Compson	Read Replies (1) \| Respond to of 614

The right question is to ask whether a 40% discount assigned by Mr. Market is appropriate. In this case, with concentrated ownership at DLIA with the right incentives to close that discount, I would argue that a 40% discount is way too high. As to the options, they are always difficult to handle. At 1/99, there were approximately 3 million options struck at an average of 15.63/share. Of these, only 351,327 were currently exercisable. Thus, your inclusion of all 2.6 million options rather overstates the case. As to the shares of DLIA that TURF bought, well, as a DLIA shareholder, I own 75% (or so) of those shares. So we can't really count all of them either. Let's agree that a reasonable amount of dilution is 1 million shares. If that is right, then each share of DLIA represents .82 shares of TURF. Give me $3/ share for DLIA's core business so that the "look through" value of DLIA is $33/share, which is a 38% premium to where it is currently trading. Is this cheap? It all depends on whether the Kahns will close the gap. I think they will.