I would not avoid it ...
Divine, which takes significant investments in Internet
companies and offers them a suite of legal, real estate
and public relations services, has already started shifting
and cutting back its ambitious plans.
... I'd hope they get the offering off, and then I'll follow it closely - it has the potential to be one of the all-time great shorts.
Where is the value added in providing legal, real estate, and pr services? This is an unwieldy mess, set up at a time of an Internet flurry and bubble. It makes no sense to me.
There are private companies, similarly positioned, better focused, with technology and marketing that sets them apart, valued at 1/4 to 1/8 of this bloated company. By this comparison I think a fair value is about $2.00-$3.50 per share.
Anything over $14 is like putting a bullseye on the stock.
One more thing. The name ... the "inter ventures" I get, but the "divine" is so 1999, and if they think they need outside help from above, why would anyone want to invest in it down here? |
