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I agree. You have to try to factor many things into company valuation.
Future growth, future competition, etc. I also wonder whether the
current market cap at $3 is still inflated, as I look at a company whose
flagship product is still a 16-bit program at the start of 1998 (it's
been the only 16-bit program on my system for quite some time).
If I had paid $11/share to watch the price plummet, knowing that some of
that cash had gone to line the principals' pockets, I'd be pretty upset
(happily, I'm not a shareholder).
The folks in Miami are undoubtedly learning that dealing with unhappy
customers is a piece of cake compared to dealing with irate
shareholders; they're so much harder to ignore.
Allan
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Ted Reback wrote:
>
> You're missing the whole point - was the company ever worth $200 million?. At
> the current price of $3, the company has a market value (including Cruz's
> retained shares) of $50 million. Considering the Cruz's took out $20 million
> from the IPO, maybe they really cashed out the full value of the company--you
> can't have a paper loss if you took everything out already. Maybe their current
> retention should be called windfall profits and there's another name for the IPO
> (and subsequent investors).
>
> Robert W Cummings wrote:
>
> > >
> > Here is the way it goes Cruz did sell his company to the public when he went
> > public at the Ipo price that was recorded. Problem his he can sell some of
> > it but the majority of it is 144 restricted stock and has to be held either
> > 18 months are two years can't remember. The SEC does this to keep fly by
> > night companies from just going public to line their own pockets at the
> > expense of the public. So at 3 bucks a share the Cruz's have lost a bunch of
> > money of late from 11 bucks a share ouch!!!!!!!! and paper loss is very real
> > just unrealized but its the only way it could be realized.
> >
> > Robert
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