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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Ray Rueb who wrote (3558)	8/25/1998 11:20:00 AM
From: Rick Rappaport	Read Replies (1) \| Respond to of 10081

Hello Ray, Speaking of the stock and not trading dynamics, how does the board view the threat of the cash burn rate causing huge problems, say on a Forest Service scale of fire danger-low to extremely dangerous. At 9million/quarter, more likely 12-13 million at least, that leaves 3 quarters to use up all cash and one quarter left afterwards to use up liquid assets. That is my biggest concern along with the November convertibles. Anyone's thoughts?

To: Ray Rueb who wrote (3558)	8/25/1998 11:37:00 AM
From: David	Read Replies (1) \| Respond to of 10081

Ray-- I agree. The scary part is that the shorts realize all this and if they can increase their positions to drive the stock below 5 and knock out all the longs hanging on with margin they will see the stock move much lower once the dust of the covering settles. At that point the real shorts will cover and we will have seen the bottom. That bottom will be around the 3 level you mention. The big players will be left in this stock while all the believers in the company and product will have been squashed. Trading Dynamics or more accurately put--Traders manipulating a stock for their gains. That is what the markets are all about and we are seeing it first hand this month. Not a great lesson to have been a part of for many of the people on this thread.

To: Ray Rueb who wrote (3558)	8/25/1998 2:10:00 PM
From: Nancy L.	Read Replies (1) \| Respond to of 10081

Ray - I am not a trader, just a long term investor (buying in from 6 to 15). My broker is concerned about going below 5 because of the margin traders. My question is - if I held on until we hit the "big traders floor" say 3 - and then the stock comes back in November as we all think it will, wouldn't it be best just to hang on now as an individual rather than sell at 5-3/8 and back in at 3??? I really believe in GMGC and it's product(s). I hope that is not too confusing!! I appreciate all the valuable input from everyone - SI is great. Thanks. Nancy

To: Ray Rueb who wrote (3558)	8/25/1998 3:24:00 PM
From: Frank Wechsler	Read Replies (1) \| Respond to of 10081

Ray - Very much appreciate your imput. I decided to follow your advice on some of my holdings and set the stop loss at 5 3/8. Please let us know if you change your outlook.

To: Ray Rueb who wrote (3558)	8/25/1998 3:31:00 PM
From: Kurt Goebel	Read Replies (1) \| Respond to of 10081

Ray, I have some questions about this spiraling margin scenario. Doesn't it require that people caught is your margin squeeze be pretty much invested in only General Magic and no other marginable securities? On top of that, they must then be margining more GMGC on their other GMGC. Otherwise they would be able to rely on the other securities and would be able to sell those which were not spiralling down if need be. If this is true, isn't this sort of speculator pretty rare or at least far from the common case. All eggs in one basket. On top of that, wouldn't most who had such a style, have already been burned on the fall from the teens (i.e., fully margined back then). Adding to this, I know that my personal margin would not just dry up at 5. I could not get more margin on GMGC purchases below 5 but I would still be able to carry margin on the previous shares at a reducing rate. The market could definitely handle a few such cases without serious rupture. Where am I wrong?