Who Wants a Free IT Business? (Euroweb International, EWEB)

Dec.20.05 | About: Euroweb International (EWEB)

The Microcap Speculator submits: Euroweb International (ticker: EWEB) today announced an agreement to sell its central European ISP businesses for US$30 million. EWEB will continue to operate a Hungarian IT outsourcing business it bought earlier this year for around $10M. I need to do a bit more number crunching but it seems that after giving effect to these transactions the current adjusted market cap. is less than the cash it will have on hand upon closing...in essence giving buyers the IT business for free. I'm taking a small position here.

DISCLOSURE: I am long EWEB. Not a recommendation to buy or sell any security. For informational and educational purposes only.

EWEB 1-Month Chart