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To: MW who wrote (1540)	11/10/1998 4:52:00 PM
From: MW	Respond to of 3015

just for laughs I thought I'd reprint some oldie but goodies. And todays special comes from <<<To: Christian1310 (1194 ) From: Anthony@Pacific Friday, Sep 25 1998 2:49PM ET Reply # of 1541 well the short squeeze is fizzling out, scared a lot of people into covering( always a good sign) they got it up from 6 but with all the stock overhanging and the company's failure to disclose material events it is just a matter of time..it cannot possibly survive.it reminds me of CAML and CFON, both hads products that couldn't possibly make it ina real market environment. I think it will trade below 6 withn the next 10 days . Volume will dry up and then market makers will step aside, once the buying dries up...Who in their right mind would buy it..for long term>>> Hey 99 " missed it by that much!!!" for those children of the 60's regards; mw

To: MW who wrote (1540)	11/10/1998 5:54:00 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 3015

Why do you speak so much of the loss of customers?? Do you know specifically who they lost and how much revenue is at stake? Wouldn't making info that specific public be illegal? At any rate it was apparently enough to file a lawsuit over. You also fail to mention new deals such as Nynex The Nynex deal, that's one of those "dial this free number to listen to an audio tape of last night's scores with a short ad imbedded within to try to make up the cost" type of service like those that have been available in most major metro areas since the 80's, were popular for about a month, then were basically forgotten about, right? and the job hunting service. And that "job hunting service" is a joke. Go over and check it out for yourself if you don't believe me. localsource.net Let's see, three metro areas (none of the real biggies either), and about a dozen companies per area (with much overlap). Big names, to be sure, but I doubt they promised to actually hire anybody through that service. And you can "apply online", so to speak, but every company, almost without exception, provides instructions on how to apply which notably exclude filling out the form at LocalSource. There were better placement services on the Net back in the days of Gopher for crying out loud. Where is Mirsky's Worst of the Web when we need it? For someone who supposedly has an open mind it seems pretty closed to me. Open mind, insert foot.

To: MW who wrote (1540)	11/11/1998 12:30:00 PM
From: Smilodon	Read Replies (1) \| Respond to of 3015

OK MW, a little background data. I really thought all of this was old news, so I didn't elaborate. <<<Why do you speak so much of the loss of customers?? Do you know specifically who they lost and how much revenue is at stake? If you know this it would make your point much stronger but IF you don't know then I suggest you have no business intimating this as a major point. So please disclose those material numbers. You also fail to mention new deals such as Nynex and the job hunting service. Why is that??? You insist the telephone business is producing less cash flow. Do you know this for a fact ?? Please provide specifics.>>> From the company's Q2 10Q: "Recently, a significant portion of the customer contracts purchased in the Brite acquisition have been cancelled or not renewed." As far as specifics, the lost customers included Great Western Directory, TDI and others. I don't know the exact revenue amounts, as the company has not released that data. Regardless, SRCM calls the lost business significant, they wrote off the majority of the purchase price of Brite because of it, and they have initiated legal action against IMS. They also claimed (in a personal conversation with me, and in a presentation I think was used on the bond road show) that the IT network would generate $14 million in cash flow in 1998. For the first six months of 1998, they generated less than $1 million. MW, you know I like you, but there is no rational way to claim the IT Network did not have a difficult first two quarters of 1998, and IMS was at least part of the problem. Maybe it was better in Q3, but we won't know until the earnings come out. Nynex and the job hunting service sound like good events, but I will believe it when I see financial results. <<<<We've been here before as well. PATENTS, PATENTS, PATENTS. All of which by the way have not been questioned publically by any co. other than Worldgate.. You interpret these patents differently from me and others and you should point out that you are neither a lawyer nor did you have the patents reviewed by a lawyer . This is pure speculation on your part.>>> Yep, we have been here before. As I have said many times before, I am not an attorney nor have I had an attorney review the patents. But even if I did, I can't prove the negative. If the patents are real for anything other than addressable frames, show me royalty agreements or legal judgements. Until that time, I will go with my common sense and judge the patent position to be unlikely. If you told me you were really Superman, and walked around in a cape and tights, I would still want to see some flying and some iron bars bent before I believed you. Same here, show me the money and I will believe they have a defensible patent for all internet over cable. <<Name me one competitor[other than worldgate which you already dismissed] who has a DEAL with any cable operator to roll out a service that is competition to SRCM. >> ICTV is currently available in Santa Barbara, California and should also be rolled out in St. Joseph, Missouri this year. <<<Doesn't it at all concern you that people have been trying to discredit this co for 4 months now and still not one thing has been proven, nor has one technology come forward to displace them, and that GIC on their earnings conf. call in response to a question indicated that srcm is a valuable partner for them and believes they have a potentially successful product[s]?>>> Again, I can't prove the negative. I can only take responsibility for what I said. And I have said SRCM would not get the cash flow out of the IT Network that they claimed they would, and would never generate any significant revenues from the Interactive Channel. So far those two assertions have held. Right now SRCM is burning through their cash balance and interest payment escrow. The short argument is that this situation does not change, and as a result the company goes bankrupt. The long argument is that revenue and cash flow will improve. So far, financial results are still bad, so the short argument holds. SRCM will prove me wrong when they "show me the money." Right now they are trying to play "show me the promises." I will wait to see the cash. Best of luck, and remember, it can be prudent to take profits even when you believe in the company's long term future. Archer