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

To: pgl52 who wrote (4169)	11/12/1998 12:37:00 PM
From: Ronald C. Vinyard	Read Replies (1) \| Respond to of 10081

To All - Heard just a snippet of news.... CNBC reporting that AOL plans to offer portal services to users... anyone have any details? -rv

To: pgl52 who wrote (4169)	11/12/1998 1:44:00 PM
From: Mike Gordon	Read Replies (1) \| Respond to of 10081

Please post your source for "declining revenues". Revenues were up about 400% from the previous quarter. What are you talking about?

To: pgl52 who wrote (4169)	11/12/1998 2:00:00 PM
From: Ray Rueb	Respond to of 10081

RE: effect of convertibles and margin requirements on stock price << remember some time ago when we were discussing the convertibles and I thought the stock would sink to 2.85, sounds like you are nearly in agreement. >> I believe there is an INCENTIVE for the stock price to be below $5.00. I discussed 2.85 in relation to what a TA friend had said. I don't believe there is any incentive for the stock price to be below $4.50 other than for the short shares. << I beleive the declining revenues revealed yesterday area a big problem >> Yes, this is of concern, BUT IT WAS EXPECTED. << then if the stock goes below 5 it will force margin layers out and I bet there are lots of them in gmgc, then if it falls below 3, all margin will be forced out. This will happen after the below 5 margin sales are married up with the end of year tax break sales. >> Minimum stock price for marginability varies from broker to broker. Some require a $5.00 minimum. We've already bounced off $4.50 twice so the $5.00 minimum people are probably out. My broker, Ameritrade requires a $2.00 minimum price, though the rules effectively change below $4.00. IMHO the "margin requirement" effect won't be significant until we spend 3 days below $4.00. << So, I think we'll see below 3 a share. I thought I'd buy at 2.85, but the declining revenues make me worry that this company may not really have a great product or a great market niche, so I'm rethinking even buying at less than 3. >> IMHO this is pure panic. If you don't believe in the magic, leave. For me, when I formulate a strategy, I have resolved to stick to it when my head is filled with either greed or panic. I think this is generally known as letting "clear heads" prevail. People see bargains at $5.50, $4.50, $3.75 and $3.00. We're currently flirting with our support level of $5.75. IMO the next one is $4.50. If we bounce off $4.50 again, I think we will have achieved the coveted "triple bottom" (that's right, isn't it?). I truly hope we don't see $3.00. That would mean the dreaded "capitulation", and a long climb out of a deep hole. Good luck to all, Ray