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

To: Anthony Marks who wrote (6022)	5/3/1999 10:09:00 PM
From: Robert V. Cavaleri	Read Replies (3) \| Respond to of 10081

200 dma is good, but when I read this I got a little shiver: =General Magic Up -3: Hldrs Selling Despite Takeover Rumor Not everyone appears to be buying into the takeover rumors. Low-priced stocks like General Magic often experience intense volatility, said Lewis Alton, an analyst for L.H. Alton & Co. Meanwhile, documents filed with the Securities and Exchange Commission last week showed that 14 General Magic investors have registered to sell more than 21 million shares of common stock obtained in a conversion. The list included Microsoft, which registered to sell 2.7 million shares of its 3.6 million share stake. "If things were so great, you would not be selling the stock," said Jeff Matthews, portfolio manager for Ram Partners. General Magic went public with much fanfare in December 1995, and saw its stock shoot from 14 to 32 on the first day of trading. At the time, the company was marketing its Magic Cap communications software to Motorola and Sony for use in hand-held computer devices. The rising popularity of the Internet, however, foiled that business model. And the company eventually revamped, shifting its focus to marketing a virtual assistant service, known as Portico, that allows users to access voice mail, e-mail, stock data and calendar and address-book information via a telephone. General Magic shares fell to a 52-week low two months ago as the company was unable to meet investor expectations for service agreements with major telecommunications companies. Instead, investors had to contend with the company's announcement that its fourth-quarter loss had widened from a year earlier. General Magic reported a loss of 51 cents a share for the period, including charges, compared with a 34-cent loss a year earlier. First-quarter earnings are slated to be announced next week. A conference call has been scheduled for the event and speculation has it that news from the call will be "exciting and positive," Alton said. - Johanna Bennett; 201-938-5670 (END) DOW JONES NEWS 05-03-99 04:38 PM comments ???