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

To: MW who wrote (2343)	4/20/1999 8:03:00 PM
From: Kevin Podsiadlik	Read Replies (3) \| Respond to of 3015

1. Why don't you mention that while TV Guide is exercizing those warrents to own 40% of srcm that 200 million $ goes to source. Pays off the bondholders and put 100 million in the bank. Changes things a little, huh? A little, but not enough. So currently SRCM has 12.8 million shares valued in the market at $269 million. So, doing a rough figuring by adding the $200 million to SRCM's value, we have an implied value of $469 million for SRCM after the deal. Divided into 35 million shares that leaves an overall value of $13.40 per share, a drop of 35% in share value based on dilution alone. 2. Why didn't you mention that the development costs of the IC and VM[you know what those are?] are now shifted to the Joint Venture leaving a profitable and growing IT Network. Except for the fact that R&D spending for ALL of SRCM has been a pathetic $3.4M (and has actually been DECLINING) for all of 1998, and even if totally wiped out would have reduced SRCM's losses last year by only 6%. "Selling, general, administrative" expenses exceeded R&D expenses by a factor of 7:1. This is a growing company? 3. Why don't you explain why TV Guide would want to buy 40% of such a garbage co to begin with? As long as they can turn around and sell it at a profit to your sheep, why not? 4.Why didn't you talk about the JOINT VENTURE? I thought I was. Or SRCM's EPG?? Isn't that how they measure brain activity? That can't be significant. Oh, I see, you mean the Electronic Programming Guide, you mean the one that was roundly ignored at the Western Show last December? TV Guide's talking BILLIONS. Yeah, don't you wish you had their stock?