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To: Ray Rueb who wrote (3987)	10/29/1998 12:44:00 PM
From: Babs-e	Respond to of 10081

thanks, you explanations are very helpful to the clueless. Babs-e

To: Ray Rueb who wrote (3987)	10/29/1998 5:51:00 PM
From: james a gustino	Respond to of 10081

mr. reub: you posit an interesting scenario, but i frankly i am unconvinced at this juncture. i think we all know that the preferreds will convert their first 25% later this month at around 5 and change. i also now believe (given gmgc's recent confirmations re: the V-commerce alliance and the recent data rover spin-off) that there will be truly significant news released prior to the commencement of the next conversion period (somewhere around november 22-23, i think). IMHO, the news will take the form of either or both of a V-commerce announcement and / or a telco announcement. if my suspicion in this regard proves correct, the stock should significantly INCREASE in price later this month. not only that, but the preferreds would then have a clear incentive not to convert and flood the market with shares, but would have more of a long-term orientation / stake in the stock. i will grant you that there MAY be a drop in price due to coordinated shorting by the preferreds in the days prior to november 11, but i don't see it happening thereafter. the news IMHO will be too big to allow a massive shorting strategy to be profitable post-november 11. i also believe that the preferreds have been made privy to these future anouncements, and this is why they have been agreeable to a potential dilution of their shares per the terms of the recent 8-K. (FWIW, i personally do not view it as an incentive deal for the preferreds to back off of a short strategy.) of course, i may be way off in my prognostications............only time will tell. somehow, though, my gut tells me otherwise. please help me if i have overlooked or misconstrued anything in your post. respectfully, james a. gustino

To: Ray Rueb who wrote (3987)	10/29/1998 10:50:00 PM
From: Kurt Goebel	Read Replies (1) \| Respond to of 10081

I'd say the 8-K and the lowering to 10 is good for the perferreds and good for long investors if they can get the price back up significantly above 10. There would be little incentive for them to short it if they already have 10 locked in. The preferred shareholders would have incentive to push it higher. If the price is below 10, the game is the same as it was. As for the DataRover. It's good to see it go. It was losing money and not performing. Better to put all the wood behind one arrow :^) It was also a potential conflict for General Magic in it's quest to make Portico and magicTalk deals with other PDA/device makers. I suspect they have a minority stake because they also transferred some liabilities to the new company. Will this transaction be part of this quarter or next?