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Technology Stocks : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Tech Master who wrote (17007)	3/10/2000 11:52:00 AM
From: Papillon	Read Replies (1) \| Respond to of 17305

Ouch, LOL! Hey, how about some Stock Swap talk? Re: GMGC, at this moment it is in a trading correction, down from its morning run. Here's what briefing.com had to say just a couple of days ago. Trader's Edge The Next Big Thing from briefing.com 08-Mar-00 08:32 ET [BRIEFING.COM - Damon Southward] Where do you want to go today? Impressive price action in sector stocks suggests that investors are ready to hustle into the wireless age. It hasn't taken long for frenzied buying in this group to drive the stocks to nosebleed multiples, quickly pricing the issues out of the reach of everyone but the chart chasers. With real estate in this sector now going for as much as 1100 times trailing sales, only natural that the process of gentrification has begun. Investors have been trickling into some of the seedier stocks of the wireless market, betting that rising prices in the top names will benefit the entire group. So far, the strategy has paid off, as everything from beaten down wireless equipment test stocks to cash-strapped paging companies have seen their shares triple over the past quarter. Another sub-sector that has begun to participate in the wireless revolution is Voice Recognition. One name that jumps out from a price action/volume perspective is General Magic (GMGC 12 9/16). The Story On a year-to-date basis, the stock has more than tripled. A spike in volume has occurred over the past week, with turnover surging to just under 14 mln shares on Friday, vs average daily turnover of 3.8 mln shares. General Magic is known by most investors as a momentum play, first picked up in March of 1998 on news Microsoft would acquire a minority stake in the developer of integrated voice and data applications. GMGC was a $2 stock at the time. For the first time in several years, General Magic is being bid up on the basis of its long-term prospects, rather than meaningless press releases and/or short squeezes... The stock has recently been gaining mileage out of its relationship with General Motors' OnStar division. OnStar has selected General Magic's magicTalk technology as the voice user interface for the OnStar Virtual Advisor. OnStar will provide GM automobile owners with hands-free, voice-activated access to Web-based information services in vehicles. Under terms of the deal, General Magic was paid a $5 mln technology and licensing fee. In addition, OnStar also invested $15 million in General Magic and purchased a warrant to acquire up to an additional $5 million worth of Preferred Stock. In June of 1999, GMGC entered into an agreement with Excite. in which the company sold Series E Convertible Preferred Stock and a warrant to purchase an additional 100 shares of Series E preferred stock for cash proceeds of $6 million... Excite@Home is using the magicTalk voice user interface to guide callers in leaving voicemail messages and faxes for registered Excite Voicemail service users. General Magic's myTalk web service allows users to access their email and voicemail from any telephone, reply to email messages using their own spoken words and make free two-minute phone calls anywhere in the U.S... myTalk has more than 500,000 registered members. The advertising supported service is free to its members. The company's Portico service acts as a human assistant, allowing subscribers to access voicemail, email, faxes, calendar, address book, company news and stock quotes from any telephone or, using a standard Web browser, from any personal computer. General Magic is due to report quarterly results on the afternoon of March 8. Would expect to see a great deal of volatility in the stock in the days following the report, with the possibility of a sell-the-news reaction to the numbers... There are no estimates available for the company. The issue's first real level of price support is at the $10 level. Would be an aggressive buyer of the stock on a dip to $8. In normal times, a company such as General Magic never makes it to this column. But nor would have many of the stocks that have rallied from under $2 per share to $20, $30, $80... GMGC is a trader's stock: There is usually no mystery behind the stock's movement; when it runs, it runs hard; the company may offer just enough intrigue for a well-timed press release to position GMGC for the type of multiple-session, triple-digit move that has become so common in this market. General Magic isn't what one would call a gentleman's stock. But in times like these (Nasdaq +19%, SOX +79%, Russell 2000 +18%, Biotech Index +100% vs Dow -15%), playing by the old rules could land you in the poor house.