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

To: MW who wrote (2358)	4/22/1999 12:16:00 AM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 3015

Okay, a quick, serious overview, just for you: SRCM gives the JV the Interactive Channel and the Virtual Modem, and TV Guide gets the EPG. TV Guide gives the JV $5M to start, $5M "as needed", and $10M more if they feel it worthwhile. And, of course, they "give" SRCM $14.25 for their $21.50 stock. Oh, and a point of correction to your remarks, the local ads etc. that SRCM will be providing will go to the JV, not to TV Guide. Satisfied? Okay, now the analysis. TV Guide is pretty much in a no-lose position. With the recent upsurge in SRCM price, they should be able to net enough from the sale of SRCM stock to cover their commitments to the JV. SRCM, the company, will benefit, of course, given that the alternative is quick bankruptcy. Of course, the post-JV SRCM won't be the same company it is now, and won't even be close to the company it has pretended to be. Dreamy visions of yours notwithstanding, www.localsource.net is still the same bad joke it was when I last visited it. I would have thought that by now they would have at least finished transcribing the voice recordings so that they wouldn't be saddled with that bizarre "surf the web to find the phone number to call another machine" setup. Apparently LocalSource/IT doesn't even have the budget for a clerical worker to perform this simple task. Finally, as for the joint venture, what we have is a product that flopped last year in trial runs, with a $10 million infusion, and it is supposed to be a world-beater this year? $10 million will take a product that wasn't competitive last year and make it a player now? In the immortal word of Bill Cosby: "Right." None of which, lest we forget, affects my original point. In case you have forgotten what that was, let me phrase it in the form of a question: Why would "smart" money pay $21.50 for a stock that someone big will soon be willing to part with at any price significantly above $14.25? See you soon.