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

To: Bobo who wrote (513)	7/21/1998 2:10:00 PM
From: MW	Read Replies (2) \| Respond to of 3015

Bobo; <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.> I believe you are almost right. I'm not sure about the options but the warrents are wrong. Each warrent only buys 1/2 share and I'm not sure of the warrent count but I thought there were less than that. I thought it was closer to 4,500,000 which in turn would yield 2,225,000 shares which will be exercised at $11. Therefore, I would put a value at 25/share at $415,000,000 as follows: $300mm common stock, $25mm options, $55.625mm for warrents[2,225,000 x $25],$100,000,000 debt, LESS $20,000,000 cash,& $20,000,000 held in escrow for future interest payments, &$25,000,000 received by the warrent conversion. IMO CHEAP[ if patents and technology are for real...I think they are] Co. believes patents alone to be worth over 1 billion. If a buyout I have no trouble envisioning twice this price if not more. Regards; MW

To: Bobo who wrote (513)	7/21/1998 7:53:00 PM
From: Street Walker	Read Replies (1) \| Respond to of 3015

PATENTS..........and short/long Re-read this for confirmation that what SRCM has is for real: #reply-5239029 WHY I WOULD HATE TO BE SHORT THIS STOCK One of these mornings we may wake up and to the premarket news: SRCM is being bought out for ~$48/share. This will only reward current longs. Shorts will be at an INSTANT loss, not even a chance to cover lower because it will be an instant gap in price. On the other hand, if their is no truth to the rumors, the stock will just begin to drift lower - no instant loss for the longs. The neat thing is that it is currently drifting higher! INSTANT loss for the shorts if a buyout, INSTANT profit for the longs. A possible drifting loss for longs if no buyout. The shorts are taking the biggest gamble with the longest time frame to make a possible profit. I can feel the buyout coming. Anyone else "feel it"? I'm left with maintaining my LONG position based on my intuition of the present moment, rather than the history of past months. S.W.