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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (2564)	9/3/1998 5:01:00 PM
From: Kurthend	Read Replies (1) \| Respond to of 18998

Christian, Yes I am long. I guess I forgot to mention that on my last message. I definitely won't argue the point that you made on the bear market and the reflecting value in terms.....:) But, GMGC is not highly leveraged. Look at the balance sheet. GMGC was able to acquire cash in return for convertibles. It was mentioned earlier (not by you) that the convertibles were floorless. That is absolutely incorrect. Cash and short term assets were around $57 million at the end of last qtr. The burn rate was around $8-9 million per qtr which is expected to go up modestly due to the progressive roll out of Portico. Still, if you assume the burn rate to go to $13 million per qtr then GMGC still has 3-4 qtrs to go before running out of cash. That is not evening including the revenue from Portico. Granted, GMGC has come out and said that the revuenue for the 3rd qtr will be minimal, but if the telecos sign up and are running in the 4th qtr then the revenue will go up dramatically. If not 4th qtr, then revenue will dramatically increase starting in January. Take care, Kurt