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To: Sea Otter who wrote (2820)	7/19/1998 12:20:00 PM
From: Ray Rueb	Read Replies (1) \| Respond to of 10081

RE: GMGC Financial Analysis I agree with your analysis, it comes close to what I was figuring, except I did mine on the back of some old printouts. By the August of 1999, I'd expect GMGC to be between 40 to 50. In between now and then, it looks like a volatile roller-coaster, with a large dip in October of this year (this is just my gut-feeling). BTW: From looking at the charts, I think that if GMGC were to go above 15.25, it would quickly explode to 20. I think it is commonly known as a "short seller's squeeze". Just my current $.02 Ray Rueb

To: Sea Otter who wrote (2820)	7/19/1998 1:08:00 PM
From: CanynGirl	Read Replies (2) \| Respond to of 10081

Great analysis. Some things to think about: 400,000 subscribers is a great target for end of 1999 (I hope you are right, but it seems a little high). In any case, that means signing up roughly 24,000 per month. Therefore, you can't count the full year for all 400,000 subscribers. If it's a flat monthly signup of 24,000 per month, gross revenues would be about $115 million (starting from Aug of this year). Of course monthly subscriber growth rates won't be flat, so even that is high. Also, did you include the $50 signup fee in your revenue calculations? That would add $20 million assuming no revenue sharing. After thinking about it, your 300 minutes/month per subscriber might be too conservative. That's only 15 minutes/business day. For a mobile professional, that seems very light. Unfortunately, I don't have access right now to data that shows how much time a mobile professional spends each day doing voice mail and email. What do you think revenue sharing would be with a carrier? I would expect they will account for a good % of the subscriber signups next year. I'm not an accountant, but I thought the NOC would be a fixed asset and not an expense? Maybe an accountant on this board can clear this up. $20 mil marketing & advertising seems high. That would be 20% of $100m in gross revenues. Although, I would love to see them spend that much as I think it would be well worth it in the long run. Thanks for the great post.

To: Sea Otter who wrote (2820)	7/19/1998 7:25:00 PM
From: Carbo	Read Replies (1) \| Respond to of 10081

Advertising blitz should give GMGC a strong burst in the next few weeks. Several investors I know have pointed this out to me which makes alot of sense. Less than 10 days away from launch. Buy the November 15 calls************************************

To: Sea Otter who wrote (2820)	7/20/1998 12:29:00 PM
From: Mark Oliver	Read Replies (1) \| Respond to of 10081

You may have already seen this on the L&H thread. They have a report on Microsoft's Agent software and how it will work with L&H. Message 5169211 Regards, Mark

To: Sea Otter who wrote (2820)	7/20/1998 1:24:00 PM
From: Mark Oliver	Read Replies (2) \| Respond to of 10081

Can you or someone else explain to me how toll charges are applied? I asked about this at the demo after the annual meeting and I got the impression I could save a lot on my long distance charges. But, I'm still a little confused how this will work. Here's the example. I'm in Calfornia and I ask Portico to call someone. They could be in my local area, or New York or even Holland. I have made a toll free call to get into Portico. I pay usage fees to GMGC for every minute I'm on the service. So, when I ask for Portico to call Amsterdam, it is not the same as making a direct dialed call. Portico is dialing for me. I'm still using an 800 number. Maybe they limit the numbers dialed to 10? That would still mean I can call any number in the US and Mexico. Can you or anyone else explain how these charges will be applied? Regards, Mark PS Have you all heard what they offer with conference calling or other interesting services?

To: Sea Otter who wrote (2820)	7/20/1998 2:32:00 PM
From: Saul H Rosenthal	Read Replies (2) \| Respond to of 10081

Sea Otter, Did you allow for enough support personel in your model? To give each of those 400,000 subs a half hour training session? And to supply ongoing tech support? Thanks, Saul

To: Sea Otter who wrote (2820)	7/21/1998 10:31:00 PM
From: Darla	Read Replies (1) \| Respond to of 10081

Keeping you assumption of 400K users, ARPU, and therefor revenue, my napkin looks like this: Revenue Expenses Commission 24,000,000 (I say 10%, you say 20%) Advertising 80,000,000 (I say a conservatively low $200/cust acquisition cost) SG&A 56,000,000 (we agree more or less) Telephony (we differ alot here) Access 1,200,000 (based on needing 800 lines to support 400K users MOUs 50,400,000 (minutes based on an extraordinarilary low 3.5 cents per minute x the number of minutes used.) DID Charges 14,000,000 NOC 14,000,000 (I wouldn't expense this but if I did, it would cost at least $2000/port and they would need to add 7,000 ports) Total Exp: $228,000,000 ------------- Net: ($28,000,000) Now, since there is only about 40M in cash, and we will be spending way before generating revenue, we will need to raise another $100M in order to cashflow this plan through break-even. That would mean issuing another 10M or so shares + warrants. So, on a fully diluted basis we would have 46M or so shares outstanding. When you look at my model, you can see that the only variable not tied to # of subs or revenue is advertising. The problem is that GMGC would have to shock the business world if they could acquire customers for as little as $200/per.