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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: MW who wrote (2190)	2/22/1999 5:57:00 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 3015

My math skills might not be as good as yours but if srcm stock is a zero waiting to happen,and you have shorted it in the teens as you say, then how did Peter Boylan get such a good deal by paying 12 million for a stock you say is a zero?? I hate to break this to you, but it's a stone cold lock that Mr. Boylan and Co. have already sold enough SRCM stock on the open market to guarantee at least breaking even on the deal. Who do you think has been doing all this selling that's been driving down the stock price? Lil' ol' us? The weaker hands among your Yahoo followers, perhaps? No, UV is only a part of this because it's a no-lose proposition for them, If anything actually comes of the joint venture, that will be gravy. And it's a win for SRCM management, who have another year to get y'all to pony up the funds to raise more market cap to sell off to someone else. So who's the loser? Well, confidentially...

To: MW who wrote (2190)	2/22/1999 9:08:00 PM
From: Smilodon	Read Replies (1) \| Respond to of 3015

MWonica, you ignorant sl.t, <<My math skills might not be as good as yours but if srcm stock is a zero waiting to happen,and you have shorted it in the teens as you say, then how did Peter Boylan get such a good deal by paying 12 million for a stock you say is a zero??>> He buys stock at $14.25, but gets all those warrants for free. You then short the stock to lock in the warrant profit. When you do this, you can recoup more than your investment for an instant profit, and lock up a big stake in SRCM for free. You are guaranteed to make money of the derivative hedge, and if SRCM ever does anything, you can make money there. The derivative arbitrage on this deal is so rich, I would have even put my money into it. <<If all of the above is true, than how did SRCM make such a bad deal if at the very worst they gave themselves another year of life???>> Like many things, it depends on your prospective. If you are long: The deal is a disaster. To get $12 million, they gave up almost half the company and its most prized assets. Obviously, they were only worth a fraction of the hype. If you are short: The deal extends the life of this dog, as they have more cash which is negative. But, it validates the short case, by giving a low private market value to their most hyped assets. It also makes this a slower, but safer, short as all the dilution puts a cap on analysts projected future earnings. And to be clear, I don't think they will ever have any earnings, even though their analysts may project it. So, you see MWonica, he didn't really love you. And all those things he told you, that you wanted so much to believe, were just to get what he wanted from you. And now they are done, and you are tossed aside. I'm sure they will call you when they need future service. But it won't be love, it will just be more dilution. Have some dignity, and realize who is really using you. And don't get so upset by those who point out reality to you. Poindexter, Man of math, Scourge of SRCM,