Replies to post #7085 on Interups Inc (ITUP)

[snow]

RD thanks for your interesting comments! Normally very few companies trade at less than net assets per share. It is only if there are special reasons for it, for instance that a company is losing money and the markets expects that future losses will eat up net assets that stocks trade at less than net assets per share.

"And we also know what a conservative formula for intrinsic value could be. Simply multiply by 10 (representing a growth rate somewhere between 5% and 10% annually). Which could be as much as 100 if the company really grows fast but we are not going to assume that for now." Your here bring up a very interesting point. Actually this line of thinking is one reason why I would be very interested in knowing the numbers for the last financial year and what sort of business activities explain those numbers. Now we have no knowledge about the future activities of ITUP itself. Are those activities taken over by the WM and the SPAC's? As you know the shareholders of ITUP will only directly and indirectly own about 6% of the SPAC's. To the extent that these take over ITUP's past actitities it would seem that future profits will be reduced by about 90%.

As for future cash dividends I would like to mention that the first cash dividend from ITUP is an extraordinarily high dividend to helt the Indian owners of the debt that has been converted to shares recently as far as I remember. After the first cash dividend we can only expect a cash dividend of 25 cents per quarter. Assuming a dividend yield of 10% that would justify a pps of 10 dollars. Until I get a clearer picture of the current net assets of ITUP I will mentally assume that my roughly 8,000 shares in ITUP at least have a value of about 30,000 dollars. This implies that I have shares worth more in two other stocks. But I also assume that this is a very conservative assessment and that the value could increase somewhere between 10 and 100 times in the next 12 months. It will be very exciting to see especially how the WM works out. I am less optimistic about the SPAC's.