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

To: Kurthend who wrote (3949)	10/24/1998 12:03:00 PM
From: Seconds Out	Read Replies (1) \| Respond to of 10081

Kurt, Regarding your assumptions, I think (hope) that the expenses will not be quite as high as you are thinking. The 9.9 million cash burn rate of last quarter included the NOC, if I recall. The increased expenses of operations should be substantially offset by that non-recurring cost. I also seem to recall GMGC saying at the shareholders meeting that the financing would carry them through 1999. Of course that statement may have implicitly included revenue projections as well. In my conversations with GMGC, they recently indicated that another NOC would be necessary in two cases. First, if they were approaching capacity of 100,000 users for the first NOC. Second, if the Carrier(s) decided to use GMGC's NOC instead of their own. Obviously, in the first senario GMGC will be generating the revenue to cover the costs of the second NOC. In the second senario, I don't think anyone will fret over the cost blip knowing the Carrier(s) stage is upon us. Interestingly, GMGC has indicated that they are offering two models to the Carriers, one of which includes the Carriers using their own NOC's and also includes a reduced fee schedule to GMGC due to the reduced overhead. I like that senario. I guess it is also possible that they could Joint Venture with a Carrier or two to build a NOC in the Carrier's back yard. Anyway, have a good week and try not to think about things too hard.It isn't about IF, it is about WHEN. ANd the time is soon to be upon us,IMHO. Seconds Out.

To: Kurthend who wrote (3949)	10/24/1998 12:22:00 PM
From: Mark Oliver	Read Replies (2) \| Respond to of 10081

I heard Ron Elijah, a Robertson Stephens mutual fund manager say once, "My biggest problem is letting the short term get in the way of really good investment ideas." Wouldn't it be something if you had to choose a stock to buy and put it in a time capsule and wait to see what comes in 10 years. A lot of investments would probably go a way, but some would pay for all the mistakes and then some. I understand your concerns about short term financing. But, look at other similar companies that have pioneered new businesses like cellular phones. Even after all these years and millions of customers many are not profitable. This takes time. I think it is never sure that General Magic will succeed, but unlike many other investments I hold, I see they have the potential to go up 20 times in 2 or 3 years with only reasonable success. It's not going to be easy to stick it out. I think the really hard part will come when you've got a big profit to protect. What if the price goes to 60 and then pulls back to 45, and then goes to 70 only to fall back to 25. Anyway, it will never be easy. I will continue to review the situation, but generally, I hope not to sell any unless there is a big event, or something makes me loose faith. Now, can I keep the short term from breaking up a really good long term plan? Regards, Mark