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

To: Phil(bullrider) who wrote (1055)	8/26/1998 12:50:00 AM
From: Mr. Pink	Read Replies (1) \| Respond to of 3015

With the Source Media 12% bonds plummeting in a virtual free fall, today's quote was 45 bid offered at 80, one must question the vaule fo the equity, still valued at $100mm. If you use a generous value of 70 on the bonds and subtract 18 points of escrowed interest payments, you come up with a valuation on Source Media of roughly $52 million ascribed to the enterprise. It follows then that equity holders are placing a 100MM valuation ont he equity which is effectively a warrant struck 100% out of the money. Got the concept? Either the bonds are way too cheap, or the more sophisticated junk market is telling you that Scrotum Stock ain't worth diddly. Mr. Pink