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

To: Kevin Podsiadlik who wrote (2193)	2/22/1999 8:05:00 PM
From: Mark C. Livermore	Read Replies (1) \| Respond to of 3015

What we have here is a failure to analyze. SRCM has bought another year for itself-at a high price but at the only price that capital was available. Now in the event a year from now if nothing is working UVSG will be in the catbird seat to jump on the questionable remnants of SRCM's businesses and assets. In the very unlikely event that there is something to SRCM's wild press releases and hype-UVSG makes a lot of money with only a $12mm commitment and if in fact they shorted SRCM stock versus their warrants they have created risk free profits. People forget that UVSG made a bona fide bid worth over $2 billion in the last six months on Gemstar. If they wanted to own SRCM lock, stock, and barrel it would already be a done deal. A $12mm deal to them is little more than a rounding error to UVSG-But, it's life and death for SRCM. The people putting positive spin on this transaction are sadly misinformed. Dilution is bad, putting "best assets" into a joint venture is bad, and these people want you to believe that in fact these are good things. Sort of like walking west and looking for the sun to rise in front of you. Walk until you enter the Pacific Ocean and you still won't see it rise in front of you.