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

To: Robert V. Cavaleri who wrote (5237)	2/19/1999 12:22:00 AM
From: Sea Otter	Read Replies (3) \| Respond to of 10081

Either a company has the management, product and market, or it doesn't. If it has these three items then over the long term it succeeds. GMGC, imho, has all three of these attributes. In addition GMGC is positioned in an exploding space and has extremely strong partners (INTU/QWST/MSFT). It has a great business model. It has an elite team. It has a compelling story. And it's stock is cheap ... and getting cheaper ;>} All of the above was true last month. It is still true this month. Until I see one of these items change I see no reason to get depressed and break out the Zoloft. What gmgc DOESN'T have is a revenue history. Nor does it have analyst coverage. So we're at the mercy of these short-term forces. Yes, short-term forces, such as converts. All I can say is I that now have a profound respect for the implications of this type of financing. It is a new subject for me and boy am I learning something. However, the converts are not forever. 1/2 have converted, right? It looks likely that the rest have converted now or very soon. Therefore this force is soon spent. It's not like gmgc is now forever tarred by some infinite power that perpetually keeps it in hock. Another observation. Over the last six months 4 3/8 has been the rock-bottom floor for the stock. We haven't penetrated that floor. If we do so in volume next week I'd say we're indeed in a new valuation realm. But that hasn't happened yet. Anyway, I'll be darned if I get panicked into selling into a six-month low for a company with all the positive attributes of this one. Nope, no way, won't be rail-roaded. Wouldn't be prudent, as George Bush use to say. If the "convert theory" is true then we should see a bounce next week. That would be nice. I think that is likelier than breaking the 4 3/8 floor. We'll see ... Sea Otter