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

To: Mark Oliver who wrote (3955)	10/25/1998 10:06:00 PM
From: Seconds Out	Read Replies (1) \| Respond to of 10081

I think that they will convert now, mainly because they will feel that the price is right and must know what is on the horizon. The maximum dilution if they converted all shares at $5 would be a 20% dilution. If all shares were converted at the $19 price as calculated on the date of the financing this summer we would have a 5% dilution of shares. Remember that they can only convert 25% of their shares effective November 25, so even at $5 the dilution would seem to be 5% at this time. Who knows what the timeframe is for how long they will hold their shares. GMGC has stated that they view he investors as a strategic partner moving forward. I don't know first hand anything about their reputation, but I have heard some positive feedback from some friends who have used venture capital in their privately held businesses. Regarding the Carriers, I think the reason everyone is so enthusiastic about them is because how quickly the Carriers can market the product to a very large audience. As you know, the marketing costs to increase the subscriber rate into the 100,000's will be large. I think GMGC is making the decision to share the wealth in order to get the wealth much more quickly than they could on their own. Name recognition means something as well. Most of us have shared your concerns at one time or another, including now. They are valid. One of the things I like about GMGC is that I feel that they have made prudent decisions focused on the long haul. Not that some of their decisions don't have some risk, but sometimes you need to give up something to get something more,IMHO. Best wishes to you and all believers in the magic. Seconds Out.