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Technology Stocks : General Magic

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To: Rick Rappaport who wrote (4427)	12/15/1998 3:12:00 PM
From: Kurthend	Read Replies (1) of 10081

Rick, The below numbers are based on memory as I don't have the last quarterly report in front of me. I base the fact that the burn rate last qtr was about $12 mil and I believe GMGC stated their burn rate would be higher this qtr and possibly the next two qtrs or so. GMGC has approximately $45 million (plus or minus) in cash, equivalents, etc. If GMGC burns say $13 mill per qtr, then after 3 gtrs (including this qtr) GMGC will have burned up aboiut $39 million leaving only about $6 million left. Revenue will most likely be almost non-existent / nominal this qtr (as was last qtr) and I really don't expect anything much next qtr. Money from the Intuit and any possible teleco deals will not produce a lot of revenue until 2nd qtr 99 at the earliest. This is all in my opinion. I am still long on GMGC, but I now believe that revenue won't be flowing until sometime mid year of 99 or later. The market looks 6 months ahead when pricing a stock, so hopefully the price of the stock will indeed start going up prior to a substantial increase in revenue. GMGC may have something up there sleeve that nobody knows about, so I could be way off base. This seems to be the case a lot of times with me in regards to trying to figure out companies:) If you or any others come to a different conclusion, please feel free to rebut anything I have said above. Take care, Kurt

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