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

To: Jerry Salem who wrote (392)	7/17/1998 4:11:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 3015

SRCM - HYPE Promotion? Buyer Beware This company is currently being exposed. Expect More Exposure. I do believe this is a GREAT short trade. I own some puts and have advised my clients to short or buy puts - particularly on any RUMOR or News Rallies, as I feel the company is purely promotional with no ability to deliver a competitive product. (Incidently I gave up my license years ago and currently have no NASD regulatory ties of any nature, so lets not waste time on my ability to post here folks.) I will be aggressively trading the stock short, or with puts on all rallies, as I see good potential for the stock to go below $5 and a very real possibility for the company to have serious financial problems due to lack of significant revenue, huge debt service and no foreseeable new revenue or new marketable services. I and cable industry insiders I have spoken to, consider SRCM's existing "internet like" services as unable to compete in the internet service market. They must get cable companies to contract their services to survive, and we believe their services are not competitive. It is widely felt that their technology is dated and has been leapfrogged by better technology and services. Contrary to SCRM's claims, their patents are widely seen as significant, as they protect old technology similar to that offered by SRCM in Colorado Springs, a service that clearly failed to interest subscribers. Furthermore the company has a long (over 5 year) history of providing HYPED up promotion of their supposedly "new technologies", but they have never produced any service that was economically marketable. They do IMO need to raise the money from the exercise of warrants, which requires the stock to trade above $20, and SRCM management is paid HUGE stock bonuses if the stock price increases. I see this as nothing more than another HYPE promotion that takes advantage of the current investor appetite for internet related companies. Cheers Steve