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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Eric W. Richesin who wrote (6697)	7/11/1999 3:30:00 PM
From: Seconds Out	Read Replies (2) \| Respond to of 10081

The Preferreds can sell there shares at any price upon conversion. However, I believe that the July 13 date just locks in the conversion price. It does not force the conversion. That being said, I would guess that the Preferreds would be likely to convert quickly. That would give them the flexibility to hold or sell as they so choose. Though they would benefit from a soaring stock price, they also have a time element to consider. Their business is to do additional financings, and their history with GMGC is not to hold shares long term regardless of potential. That could have been due to their knowledge of the fact that they were going to do another round of financing, however. Additonally, don't forget that the mere activity of them selling will create negative pressure on the stock price as it provides abundant supply of stock to meet whatever demand is occuring. Whether the actions by GMGC that cause demand to increase for its stock can overcome the additional supply of the Preferreds is relative to the nature and type of announcements that are forthcoming. I certainly agree that the Preferreds would like to see the price rise decently above their conversion price which is 110% of the closing price for the last 10 trading days leading up to July 13. And since they have no more incentive to see the price held down, I guess we will soon find out how much of a role they may have played in the recent trading action. Meanwhile, on a more long term perspective, I continue to be excited about GMGC and the whole idea of voice agents, accessing the web over any telephone, and the caliber of partners with which they are associating. Seconds Out.