Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Ellis Rudman who wrote (78)	4/19/1998 8:05:00 PM
From: songw	Read Replies (1) \| Respond to of 3015

From tomorrows IBD On the upside, Broadcom rocketed 29 5/8 to 53 5/8 on its first day of trading. The Irvine, Calif.- based maker of high-speed chips for cable modems and digital television set-top boxes offered 3.5 million shares. They were priced at 24 and opened at 62. Source Media darted up 2 1/16 to 17 7/16 on seven times its usual trade. The Dallas-based company, which has yet to turn a profit, also provides technology for delivering the Internet through digital cable TV set-top boxes. My guess- some think SRCM will be boughtout this weekend BTW thnks archer for a gentlemanly exposition of your thinking

To: Ellis Rudman who wrote (78)	4/20/1998 9:57:00 AM
From: Smilodon	Respond to of 3015

There are probably better places to put your money. I appluad your success in this stock. Source has done a good job of not building any expectations for immediate success of their virtual modem. So nothing catastrophic happens in the near future. What I do think happens is: Source does not get the cost reductions and growth in the telephone business they forecast when raising the debt. Prudential downgrades to neutral/hold citing valuation and wanting to see progress in the telephone business and carriage agreements for the virtual modem. The stock occasionally spikes up on rumors of agreements in the works. Source may even get a few agreements. These agreements never yield any real revenues. The set-top box makers start building cable modems into the boxes. The telephone business stabilizes into a slightly profitable, declining revenue business. SRCM files bankruptcy and writes off its entire cable business. The company comes out of bankruptcy as a pure telephone business and becomes a bulletin board stock. Bottom-line, this is slow death with periods of great hope. I don't know if we have seen the all time high yet. Certainly there will be upward spikes along the decline. You can trade it, but there are probably safer places to trade. Regards, Archer PS: Source reports earnings this week.