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

To: MW who wrote (505)	7/20/1998 5:15:00 PM
From: Pluvia	Respond to of 3015

QUOTE: "Source Media's technology patents are outdated..." <<...Dill argues, however, that Source Media's technology patents are outdated...>> Hey how about that? An industry expert who NOT ONLY knows all about SRCM's "internet wannabe service", but an industry expert that knows SRCM's patents inside out... "outdated"... Just As I said also huh? Sorry ladies and gentlemen, that's what you get for buying and holding a stock based on nothing but rumor... sign up for a 30 day trial to TheStreet.com to read the entire story - great website BTW thestreet.com

To: MW who wrote (505)	7/20/1998 5:34:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 3015

QUOTE: "it wasn't really Internet access" "We thought it was very limited and it wasn't really Internet access," says one cable operator..." thestreet.com Sign up for a 30 day trial to TheStreet.com to read the entire story - great website BTW

To: MW who wrote (505)	7/20/1998 10:55:00 PM
From: Pluvia	Read Replies (2) \| Respond to of 3015

QUESTION: Worldgate is defending their lawsuit vs SRCM - trying to void SRCM's patent. From the quote noted in the TheStreet.com story - it does not sound like they are close to a settlement - sounds more like they fight SRCM to void their patent. Now, why would MSFT buy SRCM for their "super dooper patents" if there is a real chance WorldGate will void the "super dooper patents" with their lawsuit? Heck SRCM has no market ready product/service for any type of internet cable service, thus SRCM would be of ZERO value to MSFT except for their patents. The entire BULL reasoning behind a buyout is HUGELY flawed. There is just no logical reason for a buyout, except... One... Spreading the rumor of a buyout to keep the stock price above 20 for 20 days to exercise the warrants... Heck that's like... 25.85 million reasons for SRCM to fuel this ridiculous buyout rumor...

To: MW who wrote (505)	7/21/1998 11:49:00 AM
From: Bobo	Read Replies (2) \| Respond to of 3015

Any premium?.... Let's take a look at the case for bulls. And please correct me if you challenge the numbers. At $25 / share, it would cost an acquiring company $600 mm for SRCM. $300 mm in common stock + $25mm from 1mm options that are outstanding but not included in current share count since they would be dilutive to eps + $175mm from the 7mm shares from outstanding warrants that are not currently included in the share count for the same reason + $100mm in debt. At $40 / share, it would cost an acquiring company $900 mm for SRCM. $480 mm in common stock + $40mm from 1mm options that are outstanding but not included in current share count since they would be dilutive to eps + $280 mm from the 7mm shares from outstanding warrants that are not currently included in the share count for the same reason + $100mm in debt. So the question becomes, what do the bulls think an acquirer is really going to pay for patents that are questionably valuable, at best, and worthless at worst. If you're right on the patents being worth $900mm, that is a 50% gain from this point. Based on my discussions with cable execs, this is hard to believe if only for the simple reason that the market really is not asking for the service. Look at the Col Springs and Plano, TX trials -- abandoned. Look at the prospectus for Wink's IPO. The revenue is simply not there. If your wrong, you will lose all your money since this company is bleeding cash. These do not sound like very good odds to me. Short Again (after thinking thru this logic), Bobo