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

To: VIPER85730 who wrote (5586)	3/13/1999 11:01:00 PM
From: Mark Oliver	Read Replies (3) \| Respond to of 10081

Well, it's clear they must have financing and that leaves several choices; - go to the market. - private placement with a partner or friendly company. - convertible debt financing. - wild outside possibility that a product generates revenue and advance license fees. - They sell the company. There doesn't seem to be any other choice, unless they have some IP they can sell. I think they would have sold DataRover if there was a buyer. It would be very nice if a project like the one with Intuit involved advance payments, or a one time fee, but they don't seem to have the leverage to demand much. So, I'd expect some sort of announcement soon. The market can't bear the suspense. I feel we are not in the most stable time, and it will be much harder to go to the market if there is a large correction and it may not be that easy anyway. It's really pretty scary. If they could get a solid investment bank to lead the secondary, it would probably do a lot to get more market coverage and interest in the stock. Typically, shares often trade up as the offering approaches because of the renewed interest. This takes time though, and buy some calculations they have only 3 or 5 months before crisis. So, it just seems logical that we are hanging our hat on some company taking an equity position. Does anyone think Wireless Knowledge has the money? Qwest? Microsoft? It seems like a short list. Any other ideas? Whatever, now we just wait. Well, this scenario is not new. I think they've been going this direction since they proposed adding stock to the float. They probably didn't do it to buy another company. Now, I hope they have been telling somebody what the hell is going on so that they will do this deal, because I find this suspense is just plane killing. Will they sell the company? I wonder if you have any opinion on whether it was realistic to expect some sort of better guidance for this coming quarter???? Seems to me that it will be finished in 3 weeks and they should have some insight to give a little guidance. Regards, Mark PS Tax loss on capital gains as I understand it. One can negate all capital gains with capital loss, but when loss exceeds gain, you are limited to $3000 that can be applied to other income such as wages, dividends, and interest. If you have a loss larger than $3000, it can be carried forward to future tax years for as long as it takes to be used. If I was at a loss on an investment, and I thought there would be no change in a stock for 30 days, I would be wise to take the loss and purchase the stock back later. If I bought the stock back before 30 days were up, my loss would be a "wash" which would be calculated into the cost basis of the new shares. If you have gains, or ever expect them, it can be profitable to take losses if they are timed well. This is clearly market timing. In the case of GM, if I were to take a loss now, I'd be doing so thinking the worst has come, because I believe it is highly likely we will get our financing question answered in the next 30 days. I feel at great risk holding here, but I think I will wait for further news before I sell any shares.