Source Media SRCM Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Source Media SRCM

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MW who wrote (2576)	6/4/1999 3:14:00 PM
From: Smilodon	Read Replies (1) of 3015

I gave the IT Network a most generous valuation of $20 million. Considering it is a marginally profitable, declining business, the true value to a private investor is probably more like $5-$10 million. It amazes me how SRCM and its turd worshipers can actually see the 40% warrant coverage as a positive. If things go badly with the JV, the warrants are not exercised, SRCM doesn't get the cash it needs, and goes under. If the JV does go well, SRCM wouldn't need the warrants to raise cash anyway, but they would serve to dilute any appreciation above the strike price. And another thing that amazes me is how this JV is such a boon to the IT Network. As if the local dry cleaners is going to buy ads on both the IT Network and Interactive TV. This deal will obviously cannibalize the IT Network if it is successful. Another example of TV Guide raping the SRCM shareholders. Of course, that assumes TV Guide doesn't abandon this deal after getting a good look at SRCM. I wonder why this deal is taking so long to consumate? Will the bondholders object to this stealth sale of assets? Is the Soundview analyst trying to find a way to back away from his recommendation? Inquiring minds want to know.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next