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To: hoffy who wrote (3095)	7/31/1998 5:08:00 PM
From: cool	Read Replies (1) \| Respond to of 10081

FYI --MASH the largest marketmaker for GMGC was on the sell side all day--everytime the bid dropped, they dropped the ask, creating continuous down pressure.

To: hoffy who wrote (3095)	7/31/1998 5:33:00 PM
From: Frank Wechsler	Read Replies (1) \| Respond to of 10081

<"GMGC showed no revenues to speak of"> Duh... Wow, obviously you did really wonderful due diligence. Of course, they had no revenues to speak of. That's why the stock bottom out at about 1 1/4 last year. I do believe that some people who fled bought the stock for all the wrong reasons (like expecting a Mister Softy buyout) However, Portico is a great product and there was no reason for the earnings report to have caused this drop. But we're all impressed with your DD.

To: hoffy who wrote (3095)	8/1/1998 2:09:00 AM
From: up_tick	Respond to of 10081

Why does everybody compare GMGC to an internet stock? The Value proposition in 'free' is pretty compelling -- that's what most internet stocks have, and those with $$ attached are within striking range of the masses. GMGC users need to decide on adding a big monthly expense, sure some will flock in to have the coolest thing on earth, but that's not millions of people. There aren't that many people willing to pay 30 cents a minute for every incoming message, every minute connected to the service. Why do you think there are no telcos on-side? They have these customers, they know how many will buy -- the're not interested. I think if you really do the DD on this you will see bottlenecks that make it nearly impossible over the long haul - the smart money has figured this out because they do the DD (they also have the deep pockets to last through a jerky ride). For the next few quarters you will see some subscribers, some revenue, but you will also see some gigantic expenses as well as a major decline in cash and book value. Do a cashflow projection with your DD considering it costs between $400-700 to acquire a customer, margins of 50%, 10M/Q fixed expense. My guess is they need another 65M in Q3 1999.