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

To: Rubber Man who wrote (2546)	6/30/1998 12:49:00 AM
From: Iraklis	Read Replies (1) \| Respond to of 10081

Rubber Man: you stated that "My problem with the financing is that the companies involved (especially RGC Int. Investors) is questionable in their past dealings." Could you please share some details with us? Thanks - Iraklis

To: Rubber Man who wrote (2546)	6/30/1998 1:02:00 AM
From: Ray Rueb	Read Replies (2) \| Respond to of 10081

RE: buy back in or wait? << I already reduced my holdings in GMGC after the announcement, and would rather miss some profit than to be hit with a loss if it dips into the dreadful single digits(unlike most my position wasn't established under 10). :( Should I wait until revenues shows up and an guesstimate can be made of the market? Would it be too late? >> You seem to me to be battling fear and indecision. I struggle with this daily. By the time revenues show up, GMGC will be too close to it's final value; so yes that you be too late for my taste. The way I look at this stock is as follows: IT WENT TO 30 TWO YEARS AGO WHEN IT HAD NOTHING!!! I FEEL IT IS EXTREMELY UNDER-PRICED. On another hand: From what you said, you took some profit in the $14 range. If you are afraid of missing some profit, but don't want the risk of a full stock position, I suggest you buy some options. Buy some call options in the amount of 1.5 times your OLD position. This increases your position and limits your loss potential. So for example... let's say you were holding 2000 shares last Wednesday. Then on Thursday you sold 1000 shares (1/2 your position) for 14. Now tomorrow, you buy 15 Feb 12.5 calls for $4 3/8 ($6562 total). Paid for by the $14000 you cleared when you sold the 1000 shares last Thursday. Now some profit/loss scenarios. On the 3rd Friday in February: IF THE STOCK PRICE IS $4.00... You've lost $6562 in the options and $9250 in the stock. IF THE STOCK PRICE IS $8.00... You've lost $6562 in the options and $5250 in the stock. IF THE STOCK PRICE IS $12.25... You've lost $6562 in the options and $1000 in the stock. IF THE STOCK PRICE IS $16.00... You're even in the options and you've made $2750 in the stock. IF THE STOCK PRICE IS $20.00... You've made $6000 in the options and $6750 in the stock. IF THE STOCK PRICE IS $25.00... You've made $13,500 in the options and $11,750 in the stock. IF THE STOCK PRICE IS $50.00... You've made $51,000 in the options and $36,750 in the stock. This is what options are for... limiting risk yet keeping upside potential.