Denver Meeting: The Real Option Valuation Method for Valuing High Risk Technology Stocks
Thursday, May 22, 2008 - 6:00pm
TBA
We
are pleased to announce our seventh event of the 2007-2008 QWAFAFEW Denver
calendar year. On Thursday, May 22nd, Sanjai
Bhagat of the University of Colorado at Boulder will present "The Real
Option Valuation Method for Valuing High Risk Technology Stocks". Please
note the DATE CHANGE from our original schedule (instead of meeting on Wednesday
May 21st, we will be meeting on Thursday May 22nd). The location and time
remain the same. Please see details
below.
Date/Time:
Thursday, May 22, 2008 at
6PM Location:
Via
Trattoria (Located on Wynkoop
between 18th and 19th in LoDo) 6PM: Networking, hors d’oeuvres
(including vegetarian options), and complimentary wine;
6:30PM:
Presentation Admission: $10
Members; $35 Guests RSVP:
Secure your seat by sending your admission check to the address below by May 15,
2008. Address:
QWAFAFEW Denver, PO BOX 19013, Boulder CO
80308 Questions:
Email Denver@qwafafew.org
Presentation:
“The Real Option
Valuation Method for Valuing High Risk Technology Stocks” Speaker: Sanjai
Bhagat, PhD, University of Colorado at
Boulder
Sanjai Bhagat is Professor of Finance at the University of
Colorado at Boulder. He has worked previously at the U.S. Securities and
Exchange Commission, Princeton University, and University of Chicago. He has an
MBA from the University of Rochester and a Ph.D. from the University of
Washington. He has published extensively in the leading Finance and Law academic
journals (such as, the Journal of Finance, Journal of Financial Economics,
American Law and Economics Review, Columbia Law Review, Journal of Corporation
Law).
Dr. Bhagat serves as an expert on: • Litigation
arising in the context of M&A and other corporate
transactions, • Corporate governance and the duty of
care, • Valuation of minority interest and controlling interest in
privately held companies, • Economics of sub-prime
mortgage, • Impact of litigation on shareholder value,
and • Corporate finance strategy.
He is a board member of Integra Ventures, a venture-capital
company; and of the National Association of Corporate Directors – Colorado
Chapter. He is also a founding director of the TiE-Rockies (The Indus
Entrepreneurs), a professional group serving the technology entrepreneurs. He
has served as the Associate Editor for the Journal of Financial and Quantitative
Analysis, Journal of Financial Research, and Journal of Corporate Finance. He
has advised U.S. government agencies and Fortune 500 companies on corporate
governance and finance issues. His work is regularly cited in the popular and
financial media such as the Wall Street Journal, Barron’s, Economist, and New
York Times.
Presentation
Summary:
Traditional valuation procedures cannot
properly capture the company’s flexibility to adapt and revise later decisions
in response to unexpected competitive/technological/market developments. The
real option technique can value the company’s flexibility to alter its initial
operating strategy in order to capitalize on favorable future growth
opportunities or to react so as to mitigate losses. Valuations computed using
the real option technique are often closer to market valuations (than
traditional relative valuation or cash flow based valuation) for high-growth
stocks.
Membership information,
including a list of our past topics and speakers, is included in the
attachment. We hope to see all of you there!
Sincerely,
QWAFAFEW Denver Steering
Committee:
Tommi Johnsen, University of Denver Elisabetta Basilico, Qwest
Asset Management Chris Gantz, AMG National Trust Bank Anna Coppola,
Flagship Global J.P. Tremblay, Standard & Poor's Investment
Services Jon Tesseo, Denver Investment
Advisors
Chicago
