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

To: Secret_Agent_Man who wrote (444)	7/19/1998 10:16:00 PM
From: Smilodon	Respond to of 3015

The IT Network is "projected" to be cash flow positive. I think it did about $300,000 in cash in Q1 (not positive, but it was a relatively small number that was mentioned on the Q1 conference call). Revenues were well below expectations, but so were costs. The company projected $14 million in cash flow per year when they raised the debt. They also said they would be on that run rate by Q2. Seems unlikely to me, but we shall see at the next conference call. You are correct about the cash reserves. I think SRCM goes to zero, but it will take about two years. MW was the first person to mention the warrant excercise as a means for the company to raise more cash. I assumed the company told this to him. Given their history of needing cash, it seems prudent to get the money while the internet is hot, instead of waiting till you really need it. It would be hard to get the price over $20 in that situation. But, who knows. Regards, Archer