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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Bobo who wrote (123)	6/5/1998 11:30:00 AM
From: pat w.	Read Replies (1) \| Respond to of 3015

ANY RUMOR?

To: Bobo who wrote (123)	6/5/1998 1:17:00 PM
From: Smilodon	Respond to of 3015

I think the Interactive Channel will never catch on. I think the virtual modem will generate moderate revenues at best. I do expect them to sign at least a few cable operators. I also do not expect the telephone business to generate anywhere near the cash flow they project. Overall, combine all the businesses together, and the company will continue to bleed cash. All the while, the cumulative preferred stock relentlessly eats away at the common stockholders equity. When they burn through the two years interest escrow, they will begin to run out of cash. I expect them to file bankruptcy eventually. Even if they sell the company for more than the debt, I expect that the excess will be little more than the preferred stock, which has liquidation preference. Leaving nothing for common shareholders. This process will take a few years. However, I think by the end of this year, much of the writing will be on the wall. I am optimistic of a stock price collapse sometime during the next year. Along the way, the stock price should spike with news of carriage agreements and bogus takeover speculation. Much of this generated by hypesters trying to get the stock to move, when the fundamentals are so poor. Yahoo! Archer