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

To: Seconds Out who wrote (3584)	8/25/1998 10:48:00 PM
From: up_tick	Read Replies (2) \| Respond to of 10081

Yes, many high tech companies are valued higher than the liquidation price. This is when they have potential to return value for their shareholders. GMGC's patents haven't proved to be fur bearing yet, and from what I gather, they were sold to MSFT perpetually royalty free. Potential is an unknown, the first hurdle is for them to show some sign that they can break even. That's a topic of much debate. I have had approx 30 people look at my pro-forma projections - 4 of them regulars here - none have challenged them yet. You also have to consider projected losses are massive, and that the company will need to raise more capital (= dilution) in the 1st half of 99. As for the value of their current technology, it has not been productized and therefor is hard to value. By the way, I think the service route was a very wise move -- tells me the company understands 'windows of opportunity' and rather than going through finishing & productization work for packaged selling, they got to market fast with a service.