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

To: MW who wrote (2576)	6/4/1999 3:14:00 PM
From: Smilodon	Read Replies (1) \| Respond to of 3015

I gave the IT Network a most generous valuation of $20 million. Considering it is a marginally profitable, declining business, the true value to a private investor is probably more like $5-$10 million. It amazes me how SRCM and its turd worshipers can actually see the 40% warrant coverage as a positive. If things go badly with the JV, the warrants are not exercised, SRCM doesn't get the cash it needs, and goes under. If the JV does go well, SRCM wouldn't need the warrants to raise cash anyway, but they would serve to dilute any appreciation above the strike price. And another thing that amazes me is how this JV is such a boon to the IT Network. As if the local dry cleaners is going to buy ads on both the IT Network and Interactive TV. This deal will obviously cannibalize the IT Network if it is successful. Another example of TV Guide raping the SRCM shareholders. Of course, that assumes TV Guide doesn't abandon this deal after getting a good look at SRCM. I wonder why this deal is taking so long to consumate? Will the bondholders object to this stealth sale of assets? Is the Soundview analyst trying to find a way to back away from his recommendation? Inquiring minds want to know.