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Technology Stocks : General Magic

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To: Carbo who started this subject	6/13/2002 6:22:37 PM
From: dgurgel	Read Replies (2) of 10081

Heinz-Del Monte Deal Suggests GMGC Should Sell VA? Read about the innovative structure of the Heinz-Del Monte deal - deal money.excite.com . Its a stretch to get from tuna and pet food to GMGC, but GMGC needs to explore something besides the FONX method. Perhaps they could sell off their VA operation including their obsolete NOC for $10 - $20 million and use those funds to continue their Enterprise software business plan for another year without diluting shareholders by raising funds from the sale of shares at this time. The VA contract results in a net loss of at least $4 million per year for GMGC so $15 million would give them almost a year of life with quarterly burn rate down to about $4 million. (The two Onstar contracts, development support and operations, are up for renewal soon.) VA for all of its problems and incredible shortfalls under early revenue projections, is still the most significant VUI service in terms of branding. At one time I thought it was also the most complex. Now that I have it, I see that it is quite simple. Even better would be a spinoff of VA together with a full license to most of the other 1997 and later GMGC technology including source code to a buyout team that included two or three of the old technology guys like Markman, White, & Lange. Let the new Virtual Magic company compete against General Magic like OS2 against Windows. Now the price would have to be up another $5 million to $15 - $25 million. I am not suggesting that the Heinz deal has anything to suggest to GMGC except creativity. Now Russian is, among other things, creative. Well, the Heinz deal does also suggest the name of the new company - OnStarKist

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