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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Graeme Smith who wrote (1802)	7/28/1998 7:17:00 AM
From: Graeme Smith	Respond to of 4634

Source Media Off 20%; Tuesday's Annual Meeting Cited By Mark Boslet PALO ALTO, Calif., (Dow Jones)--Source Media Inc. (SRCM) shares fell 20% Monday on investor jitters in advance of the company's annual meeting Tuesday. The stock had skyrocketed earlier this month after rumors spread that the company was a prime candidate for purchase by a Internet market leader, such as Yahoo! Inc. (YHOO). But the shares have since retreated, and market sources said Monday's move was more of the same. Investors have hoped the company would issue news confirming Wall Street's takeover speculation. In absence of that news, the stock fell, and Monday's move came as investor began worrying that no news would come from the annual meeting. Also, a New York Post article published Monday cast doubt on the value of the company's patents, which Source Media claims will enable people to surf the Internet on television sets, without expensive gear such as cable modems. Company President John J. Reed declined comment on the stock activity. He said Tuesday's annual meeting is a regularly scheduled gathering with an agenda that includes the election of directors and vote on an equity plan and on preferred stock. Source Media shares, which had hit a 52-week high of 39 on July 14, were recently down 5, or 20%, at 20 on Nasdaq volume of 782,100, compared with a daily average of 742,900. -Mark Boslet; 650-496-1366 Also pressuring Source Media shares was an amendment to the company's procedures for granting stock options to executives under consideration at Tuesday's annual meeting. A proposal up for shareholder vote would eliminate the 6-month waiting period necessary before executives can sell their options, according to an explanation of the proxy. Investors became unglued after news of the plan circulated on Wall Street. They feared executives would beginning selling many of the 798,800 stock options now in effect, especially given the company's still strong share price, market sources said. Source Media also seeks to increase the number of shares reserved for options beyond the 1.76 million now available. It says this is necessary to attract, retain and motivate employees. The elimination of the 6-month waiting period would enable executives to begin selling options they were granted this year as the stock price met various price targets, from 11 to 20 a share. The targets were met when the stock exceeded that price for 20 days in a 25-day period. The executives granted options include Timothy P. Peters, chairman, President Reed, Chief Financial Officer W. Scott Bedford, and executive vice presidents Daniel D. Maitland and W. Thomas Oliver. -By Mark Boslet; 650 496-1366 Unfortunately I haven't been able to find the article in the New York Post archives. If anyone can please post it.