Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pluvia who wrote (1209)	9/26/1998 3:45:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 3015

Hey Pluvey: How 'bout an SRCM drill bit party in Lost Wages when this BOS trades below a $1 for an entire week. I will buy the Champagne. Other offers? I'm sure that the Rainman can line up a proper venue.

To: Pluvia who wrote (1209)	9/26/1998 4:23:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 3015

The Significance of SRCM Losing The Kansas Lawsuit. There are some significant implications that go along with the loss of the SRCM lawsuit vs IMS. 1. IMS counter sued SRCM. With the dismissal, IMS's counter suit looks like a slam dunk win. When the case was dismissed, SRCM went hat in hand, tail between legs to try and settle with IMS to eliminate their counter suit. Expect SRCM to have to pay big, plus pay all of the IMS legal expenses. Can you say bigger per share losses? 2. With the dismissal the other suits SRCM filed against the ex-Brite clients are much weaker - thus the reason SRCM apparently went hat in hand (and tail between legs), to these other companies to try and settle with them. Again - expect SRCM to be out big bucks and have to pay all legal expenses for both sides in these cases. 3. SRCM's only hope for recovery of the $25.9 million they wrote off last Q - due to the loss of customers from the $44.6 million Brite VNN purchase - was to win this Kansas lawsuit. They now have no chance of recovery, but as you see following, they suddenly have bigger problems also. 4. SRCM has told IT clients (from the Brite VNN purchase), that IMS was wrong in taking their clients and that two of the clients who left were sued. This has kept some of the IT clients from jumping ship, leaving SRCM for IMS. Now that SRCM lost the suit, expect more clients to jump over to IMS as they know they have no liability now. To make matters worse, if SRCM really did hire more sales people recently, SRCM's expenses are going to be much higher, and loss of clients will hurt them even worse. Ouch - lower revenue - higher expenses - can you say bigger Q losses? I know I can. All in all, SRCM management seems to be running consistent with their actions for the past several years. One stupid blunder after the next. But now they seem to have solidified many of the clients in the IT business against them. I gotta think that aint gonna help them much. Especially when clients can bop right over to IMS. All Comments IMO Cheers Steve