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Now, that's a surprise!! A written reference to GMGC (General Magic). See, we didn't drop into the Pacific ... yet.
http://www.investorshub.com/boards/read_msg.asp?message_id=333617
Carefully writ by hand, near the tree where I kill'd the bar, with unrestrainable enthusiasm.
Fred
(For those passersby unfamiliar with the author ... that ain't tobacco in his cheek!)
SUNNYVALE, Calif., April 10 /PRNewswire-FirstCall/ --
General Magic, Inc. (Nasdaq: GMGC), a pioneer in voice infrastructure
software, will announce its first quarter 2002 earnings on Wednesday,
April 24, 2002.
A press release will be transmitted to the news media immediately
following the close of the market on April 24th. The company will also hold a
conference call to discuss the results at 1:30 p.m. PDT.
Those wishing to participate should call 630-395-0020 using the password
"General Magic" at approximately 1:20 p.m. PDT. A replay of the call will be
available for two weeks by dialing 402-220-3489. A webcast of the conference
call will be available until May 24, 2002 on www.generalmagic.com.
Pez, Fred, et alia -- FYI, if you have some time and haven't seen it already, go to:
http://info.alexa.com/data/details?url=http://www.generalmagic.com
And take a look around, including the "Related Links" section, then the "Go to Site" for each link . . . lots of great information on competitors, products, etc. Here's a sample:
Zvon Voicexml Reference
zvon.org/xxl/VoiceXMLReference/Output/index.html
Voicexml Version 1.0 Specification
www.voicexml.org/specs/VoiceXML-100.pdf
Voiceml
www.voiceml.com/
Unrecord
www.unrecord.com/
Loquendo
www.loquendo.com/us
Elvira - Voicexml Interpreter For Desktop
www.fi.muni.cz/lsd/elvira/main.html
Ejtalk -- Human-computer Conversational Systems
www.ejtalk.com/
Tellme Studio
studio.tellme.com/
Voicegenie Developer Workshop
developer.voicegenie.com/
Nuance-products-voice Web Portal
www.nuance.com/products/voicexml.html
Good hunting!!
v
v-man, thanks eom
Pez -- Speaking of SPWX, if you haven't seen it yet here are some recent comments from the software analyst at Salomon. Sorry for the length of the article, but there are a few interesting tidbits of info in here relating to speech recognition among all of the wireless commentary:
VC-CARRIER EVENT PROVIDES SNAPSHOT OF WHAT'S HOT/WHAT'S NOT IN NEXT-GEN
WIRELESS
Wednesday we attended a VC-carrier round-table event in the Valley focused on
financing, data-center penetration strategies, and "what's hot, what's not" in
next-gen wireless. Attendees included British Telecom, Deutsche Telekom,
Telecom Italia Mobile, and SK Telecom -- and a collection of venture players
trolling the waters for opportunities in chipsets, smart antennas, messaging,
Operations Support Systems (OSS), telco billing, and various flavors of
middleware. The dynamic was reminiscent of the recent CTIA show, with junior
vendors trying to penetrate the carrier data center for the all-important first
big deployment, while carriers ponder how to 1) offset eroding voice revenue
density with value-added data services; 2) be first to market with an
(obviously impossible) risk-free, pre-proven applications bundle; 3) improve
network management, provisioning granularity, and QoS, and 4) cut operating
costs. The following summarizes:
802.11 WLAN -- 2.5G PACKET WIRELESS INTEROPERABILITY
Given traction of high-speed wireless local-area networks (WLANs) in the
enterprise and the mass market via independent operators such as Boingo and
Sputnik, mainstream carriers are interested in software that will allow
subscribers to hop between 802.11 and 2.5G packet-wireless. Touted as a "3G
killer," 802.11 provides short-range wireless data speeds from 2 -- 54 MB/sec
(11 MB/sec on 2.4GHz for the "b" variant; 54MB/sec on 5 GHz for "a"). This is
illustrated by VoiceStream, which plans to link its GPRS network (rolling out
in late '02-03) with the 802.11b assets it acquired from MobileStar in January.
Initial service delivery will be via PC aircards, with handhelds to follow.
802.11/GPRS/CDMA 1x interoperability implies formidable software challenges in
network handoffs, voice integration, QoS, billing, and security that should
keep developers busy for years.
TCP/IP OVER WIRELESS REMAINS THORNY
Despite the much-bemoaned failure of early WAP services, the convergence of
wireless and the Internet remains a tectonic telecom trend. This is driven by
1) major content, portal, and media players eager to exploit the mobile
channel; 2) equipment and software providers such as Cisco, Sun, Oracle, and
Microsoft, and 3) enterprises seeking to leverage webified supply chain and
productivity tools. While it is conventional to dismiss the underlying
infrastructure as "collectively commoditized WAP gateways," there is much more
to the challenge of integrating voice and data, allocating bandwidth,
differentiated QoS, managing devices, IP addressing, security, and billing.
From the carriers' perspective, it remains early days in terms of delivering
TCP/IP over wireless.
CONFLICTING SIGNALS ON INFRASTRUCTURE VS. CONSUMER VS. ENTERPRISE
Venture-stage investors continue to wrestle with wireless software/services
strategies -- namely, is it best to target network infrastructure at the
carrier level, the consumer, or the enterprise? We confess to having come
full-circle at least twice in the past two years. The "arms dealer" appeal of
infrastructure is obvious. Messaging gateways or SIP-stack enabled
softswitches, for example, are going to be installed in the network regardless
of whether the branded portals, handset vendors, or carriers win the battle to
"own" the mobile subscriber. With the demise of advertizing-driven Web
business models, it has been fashionable to shun the mass market in favor of
carrier-centric strategies, but in the words of one operator, "at the end of
every device is a consumer." One of the most salient wireless data
developments thus far in 2002 has been the resurrection of "enterprise
enablement" -- a market tagged early to drive adoption, but which was slow to
bear fruit given the confluence of brittle circuit-switched networks and
cumbersome middleware. Not surprisingly, the beneficiaries have been
enterprise software majors like Microsoft, Oracle, and Siebel rather than the
alphabet soup of junior players that launched the first wave. Suffice to say
that the infrastructure-consumer-enterprise debate remains more lively than
ever among VCs and network operators.
UNSUNG HEROES: NETWORK MANAGEMENT SOFTWARE & OSS/BSS
We are strong believers that wireless data services introduce a multitude of
third-party content, hosting, messaging, Service Level, policy, and wireline
players into what has traditionally been a carrier-subscriber-voice minutes
relationship. That is, in order for the much-prophesied wireless Instant
Messaging, Unified Messaging, commerce, or premium alerts services to actually
function, there are suddenly multiple layers of switches, servers, routers,
multiplexers, and gateways involved that are totally beyond the control of the
wireless network operator. In this way, what was once a simple two-party
telephony relationship (or three with roaming) now begins to look much like an
e-commerce value chain, with most of the complexity actually on the wireline
side of the cloud. Similarly, IP-billing remains a major stumbling block for
the deployment of packet-data services, and the European operators at the event
(generally more advanced than the U.S.) pleaded to keep business models as
simple as possible -- noting that tiered-usage or value-based software models
might play well to investors, but simply cannot yet be reliably billed for. We
note that GSM-GPRS handoffs at the edge of metro areas are creating billing
headaches, as is basic prepaid SMS/data. Discourse on this subject continues
to be humbling.
MULTIMEDIA MESSAGING (MMS) -- INTERIM PRODUCT, NOT 3G ROI MESSIAH. ALL EYES ON
IM
Interestingly, there was much less discussion of MMS as an ARPU driver than
commonly heard in Europe (for example at the Cannes 3GSM show) -- perhaps
because simple SMS is just gaining traction in the U.S. We continue to regard
MMS hype as emblematic of the industry's desperation -- and believe that it is
an interim product bridging SMS and full-featured wireless Internet. The
probability that wireless picture postcards or audio clips will salvage the 3G
ROI proposition is remote. VCs and carriers at the event were much more
focused on wireless email and Instant Messaging, which leverages the U.S.' Web-
savvy demographic.
MULTIMODAL ACCESS -- WEAVING SPEECH RECOGNITION INTO THE FABRIC. COST-CUTTING
IS KEY
Speech recognition, as they say, is at the tip of everyone's tongue. We
believe speech is at the core of the converged network, along with multi-modal
access -- or blending voice and graphics (for example request a map or stock
chart verbally; receive it graphically).
Consistent the rest of our CommSoft coverage, we see telcos focused on boosting
margins through operating cost cuts. Thus, it is not surprising that speech
deployments dwell on "nuts and bolts" automated directory assistance and
customer care functions, rather than futuristic voice portal or unified
messaging "nice to haves."
While operators are keen to boost ARPU, they are hesitant to spend on next-gen
revenue creation tools, and cost control has assumed center stage amid a
general industry slowdown -- not to mention the liquidity jitters precipitated
by Sprint, Qwest, WorldCom, Williams, and Global Crossing. While capital
budgets capture the headlines in terms of large-cap equipment vendors, the real
money is operating costs, and the objective to boost margins by attacking
operating pain points. We regard network management software and speech
recognition as prime beneficiaries of this dynamic.
LOCATION BASED SERVICES, M-COMMERCE, BLUETOOTH -- THE SILENCE IS DEAFENING
At Wednesday's event (and consistent with our conversations with investors),
there was a singular lack of interest in location-based services, mobile
commerce, and Bluetooth. Much has changed in the last year. Carrier
representatives bemoaned the ineffectiveness of regulatory impetus for LBS
(through E-911 mandates) in spurring viable consumer services. M-commerce is
regarded as a fantasy in a U.S. market where SMS is just beginning to gain
traction -- and technically impossible prior to the widespread deployment of
2.5G packet wireless. Bluetooth appears to be a "solution in search of a
problem," and however complementary to WLANs as it may be, appears to have been
lost in the 802.11 buzz.
COMMSOFT STRUGGLING AMID TELECOM SHAKEOUT -- BUT IT'S THE SOLUTION, NOT THE
PROBLEM
CommSoft stocks have been punished amid the telecom shakeout, with our market-
capitalization weighted composite falling 29.2% year to date -- and no near-
term catalysts from wireless data, cable MSOs, wireline network management, or
enterprise IT spending. Our stocks are trading at 2-3x 2002E revenues and 1.3-
1.8x 2003E (excluding several negative-enterprise-value names). Nevertheless,
intelligence in the network continues to go "soft," and we believe that core
cost-cutting and revenue-creation tools in network management, speech
recognition, and wireless data are part of the solution, not the problem.
Taking a full-year 2002 view, we continue to favor Openwave Systems (OPWV, 1H,
$6) and Micromuse (MUSE, 1H, $9) -- followed by speech recognition names
SpeechWorks International (SPWX, 2S, $8) and Nuance Communications (NUAN, 2S,
$6).
SUNNYVALE, Calif., & DALLAS--(BUSINESS WIRE)--April 8, 2002-- General Magic,
Inc. (Nasdaq:GMGC), a pioneer in enterprise voice infrastructure software, and
InterVoice-Brite, Inc. (Nasdaq:INTV), a leading global provider of
speech-enabled automation solutions, today announced the completion of an OEM
partnership agreement covering product integration and joint marketing
initiatives.
Under this agreement, iVB Enterprise Solutions Division will market General
Magic's private-labeled version of its magicTalk(R) Enterprise Platform to
provide automated voice solutions within J2EE environments. By bundling General
Magic's platform with InterVoice-Brite's OneVoice(R) VoiceXML Media Gateway,
enterprise customers will experience improved interoperability and optimization
for voice-enabling Web applications.
In turn, InterVoice-Brite will deliver a private-labeled version of its
OneVoice VoiceXML Media Gateway to General Magic, enabling the company to offer
enhanced telephony/CTI connectivity features to the broader voice application
customer service industry.
"With a growing demand to voice-enable the enterprise, this partnership not
only underscores the ubiquity of voice as a reliable and natural user interface
but also marks the movement of traditional IVR technology from call centers into
enterprises' Web infrastructures," said Mark Plakias, The Kelsey Group. "The
relationship represents an excellent opportunity for both companies to develop
additional indirect sales channels for their products while moving their
respective product offerings forward."
About iVB
Enterprise Solutions iVB Enterprise Solutions, a division of InterVoice-Brite,
Inc., has nearly two decades of experience in the development and deployment of
speech and call automation solutions serving millions of enterprises' customers
worldwide. The Company has implemented speech-driven applications for travel and
flight information, banking-by-phone, stock quotes and trading, hospital and
pharmaceutical call directors, customer service and many more service
applications. Products from iVB Enterprise Solutions are deployed to extend
market reach, reduce costs and boost overall customer satisfaction. In addition,
iVB Enterprise Solutions operates as a managed services provider, delivering
products and services to enterprises ranging from monitoring and surveillance,
disaster recovery, overflow ports and application hosting. For more information
about iVB Enterprise Solutions, visit http://www.intervoice-brite.com.
About General Magic
General Magic is a leading voice infrastructure software company that provides
enterprise-class software and supporting voice dialog design and hosting
services that enable companies to quickly and efficiently provide anytime,
anywhere access to information and services over the telephone. General Magic's
VoiceXML & J2EE(TM)-based solutions enable enterprises to easily integrate voice
access into enterprise applications using a broad selection of speech
recognition technologies and telephony interfaces. These solutions make voice a
strategic tool in helping businesses improve the customer experience, reduce
transaction costs, and provide high quality, voice branded access to content and
services. General Magic is headquartered in Sunnyvale, Calif. For additional
information, visit www.generalmagic.com.
General Magic and iVB note that certain statements in this press release are
forwarding-looking and are based on company management's current expectations.
Forward-looking statements in this press release, such as managements' belief
that the partnership agreement between the companies will represent a
multi-million contract, while based upon management's current expectations and
belief, which management considers reasonable, are subject to certain known and
unknown risks, uncertainties and other factors inherent whenever management
attempts to forecast the future that may cause industry trends, or actual
results, performance or achievement to be materially different from any future
trends, results, performance or achievements expressed or implied by these
statements. You are cautioned not to place undue reliance on any forward-looking
statements. Risk factors that could cause future results to differ from
managements' expectations are detailed in each company's filings with the
Securities and Exchange Commission. In the case of General Magic, such risks and
uncertainties are detailed in General Magic's Annual Report on Form 10-K filed
with the Securities and Exchange Commission on April 1, 2002.
General Magic and magicTalk are trademarks of General Magic, Inc., which may
be registered in some jurisdictions.
Pez,
That's right. This stock goes up or down because Hyperion (or whomever in the past) want it to. GMGC could be selling cement right now and the stock would still go up or down depending on what the sharks strategy is. It has almost nothing to do with product, busines plan etc. Managment is at fault (but they need the cash so they play along). Watch for a string of PR's between now and April 24 (like today's). IMO Hyperion have just about finished covering their short postition and will be looking to unload at least 3/4 of their 33.3 million shares. volume should pick up and i think our little stock will move higher going into the CC. Badger on the RB board is good at picking up on these shifts in momentum . Fingers crossed.
baja, I think I understand
technical basis means you aren't really looking or thinking about how much money you have in this - just your avg cost?
you have probably made the right move getting your avg down to around .50
best of luck to you as well - I'll be watching closely and probably will sell my 8K shares which I purchased at .29, if we get near .50
then, when the summer doldrums hit I'll again consider buying more
Pez,
i am invested on a technical basis (its hard to keep my emotion outof the scenario with so much at stake). Hyperion will crank this think up again and i'll be there to hit the trigger to get out when they do. best of luck to you pezman.
OT: oh yes, let me also say
RE investing more $$ - I am not retired or independently wealthy, I have not much discretionary funds, my parents were not wealthy - scrimpped and scraped my way thru college - started my marriage with nothing but a job - EVERYTHING I have I and my wife have worked for. (I do have a rich godfather but I didn't see any of it)
Not expecting anyone to shed any tears for me - just understand that additional $4K to gmgc is NOT within my reach - no matter how close to even it would get me- we are still a long way from .50 imo, so I will sink or swim witgh my present shares.
baja, I have considered that
but it is VERY hard to throw more $$ at this company - that would cost me roughly another $4K, and I'm not in a position to gamble that much - It IS a gamble imo, with this company.
I suppose that means I would rather lose all I've invested up to this point, or wait at LEAST 2 yrs for the stock to hit a dollar again, than put more $$ here - I think a LOT of the retail investors feel that way now - gmgc has successfully alienated the retail community, imo. (Excuse me for the generalities, DaveG, but my emotion is showing through.)
What GMGC has got is ONStar & it will not "go away", imo.
They have a trial w GE and one with Citibank - these could go nowhere, or somewhere, 50-50 chance imo
They have slick technology, maybe slick is not the right word - interesting, useful, can save some money if implemented - costs money to implement - technology can be sold for right price, though.
They have patents, but patent protection is far into future and costs time and $$ - also could be sold if needed.
I can't think of anything else right now.
Sorry I am being short-worded here - I'm tired.
Have a good weekend all.
you could double down to get your avg cost in the 40's or 50's
for me it is a lot
for others not
I now have 16K, avg .77, 8K of it at .29
any advice?
Pez,
Do you have many shares?
Baja
baja I sure hope you are right about that:
THEN...they with the stock price so depressed from the way in which they covered their short position, they announce a new equity deal and go long for the next few months
this is pretty pitiful
dave,
I read your posts sometimes on RB. I tip my hat to you for your unrelenting due dilligence on this stock. The volume today was curious to me..what's your take on the increase? What/who's shares are being sold at these prices IYO?
Regards,
Hi, Dave. Thanks for dropping by. I don't plan to go back to R/B. I like the management here much better. I do hope you'll visit from time to time and give us the benefit of your views. I may not always like your delivery, but I've always liked the content you've provided. Thanks!
Fred
Just found this board. See a few recognized names here. I like the RB research tools, i.e. quick clicks to SEC, charts, etc. RB gets a lot of less-than-serious posts, but it's easy enough to click through them. I believe that RB also has posters who are tipped by GMGC; for example you can count on PRs being up within a few minutes and sometimes substantive things appear with IMO GMGC voice-prints.
As for my lifetime membership in SI purchased back in 1999 for real cash, SI is still there and was always quite a serious place but pretty much empty now.
It appears to me that Hyperion has created a nice little trading range in order to cover its short position (e.g. load the Ask at .24,.25, .26, .27 and load the Bid at .20, .21) Retail units forced to sell below the stacks and stacks of shares offered by Hyperion at .24 through .27 while they just sit and pick off the retail guys one by one. This way they don't have to cover their short postion into buying strength and it doesn't cost them a thing other than some admin person messing with the board all day. I think they had about 12MM shares short, so, if they are able to cover 1MM a day in this range it should take them roughly 12 trading days to get out of their short positon completely. I think they started covering on Thursday (right after they announced the deal at $0.21,,when the stock was trading at $0.26-$0.28) of last week, so, around the 15th they should be done. THEN...they with the stock price so depressed from the way in which they covered their short position, they announce a new equity deal and go long for the next few months. QUITE SHARKY OF THEM.
For a stock that's float is only 5% institutionally owned they sure have alot of institutional trading going on these days. Take a look at the I-watch section of the GMGC RB board. Today's action (so far) is 82% institutional - Hyperion is clearly posturing for their next move (whatever it may be).
Pez,
I do honestly believe that $.021 is the bottom for this stock, given that the equity deal was completed at this price. A great entry point for anyone looking to make a double or slightly more in the next month or two. I just wish I had waited. I loaded up on Thursday and Friday of last week at $0.26 thinking that Hyperion would let it run slowly up. I guess the next round of equity is to close from a timing perspective to make the same sort of run they did at the end of January prior to. The next round will be done at $.021 less 20% in my opinion then that will be it until the end of the year (when cash breakeven is anticipated to be reached). IMO, now's the time most people stuck in at averages costs of more than $.050 should be making a move - the risk is limited. Hey look, if Rom (who has lost $180K) on this stock is back in AND Chunderr (the expert investor in GMGC) is back in - it just may be the right time - but who really knows. I can convince myself of just about anything.
baja, thx, I wasn't aware of those facts
The Hyperion guys are traders - they are the ones running the market on GMGC. Unfortunately it looks like they are driving the price down for the next round of financing. It really suprises me though given how long it will take for them to dump the shares when we are only trading approx 1.5M a day
That means it will take at least a couple of weeks for them to dump those shares - of course, on any significant news the trading will be faster.
Hope they run it up prior to next financing round - yet agree it doesn't look that way at this point.
Thanks for you reply Fred. I was basically referring to my heavy investment in tech altogether (the dot.bomb comment was probably not the right way to explain my situation). I started investing in Aug-2000 after the peak. I have been trying to catch a falling knife ever since. I have averaged down on most my large cap tech stocks to a more reasonable cost (and I can live with where I am invested on these). The dark cloud over my head is GMGC - If I can just get back to even on this one ($0.53) I will only be down approx 20% on the rest overall.
Diversification really is the key I've learned. Bonds and consmer staples etc. are not the sexiest investment but, man, do I ever wish I had the balance they provide!
As for Magic don't think that we are now and forever going to be a $0.15 to $0.25 stock FOREVER. I think there will be a few more kicks at the "can". It's just soooooo painfull as Pez describes things to watch the manipulation and posturing of the guys running market on this stock.
Pez,
My understanding was that there were 10 different buyers of the 33.3M shares. This fund only invested $2 million of the $7 million raised. I believe that Hyperion are going to manage the investments for these 10 clients. The Hyperion guys are traders - they are the ones running the market on GMGC. Unfortunately it looks like they are driving the price down for the next round of financing. It really suprises me though given how long it will take for them to dump the shares when we are only trading approx 1.5M a day. I though for sure they would run it up and dump some of the 33.3M for their 10 clients at a nice gain.
Not to be argumentative, Baja, but ... with regard to: "Never again will I make the same silly mistakes" Don't be too hard on yourself.
Obviously, I don't know specifically what mistakes you mean, but, since we're talking about stocks and you mentioned the dot.bomb, you are probably referring to holding when you "should have" sold. I don't think it was all that easy! I sold some of my greatest winners in December '99 and January-February 2000. You wouldn't believe how foolish I felt. One of them that I bought at 5 and sold at 111, traded at 220 less than a month after I sold. It made me want to crawl into a hole. By April, of course, my embarrassment was assuaged, but that's not the point. The point is that it is EXTREMELY difficult to be "wise" under such circumstances. I'd never have been able to do it if I hadn't had a pressing need that was much stronger than my need to "get rich".
Over the past year, I've tried to learn to trade. I haven't found it very easy. I'm down. I haven't lost a lot, but, by now, I should be up ... and I ain't. I'll learn how to do it, but it isn't real simple for a lay investor.
Darn. I hope this nonsense doesn't sound condescending. I had a few moments, and what you said caught my attention, so I started running my mouth. I'm sorry.
As far as GMGC is concerned, I think Pez has it right: "Oh, the pain!"
Fred
This latest financing, lead by the Special Situations Fund, would appear to be a long-term investment by the Fund - this is a good news bad news story imo. It's good in that there is someone taking a longer-term financial interest. It's bad because it makes it appear obvious gmgc management can't handle the company on their own. SSF website shows they have a history of taking controlling interests in their investments.....that could be a long road for gmgc....thoughts run wild - months/ years of attempting to stabilize and finding legitimate business....oh the pain
Uh...yeah w/601,900 shares i'd say i've got a slight concentration issue. My plan is to sell into the strength of the next little run up. At this point, I'm just trying to get my original investment back.
I agree with you that the latest investors will want to see some solid return on their 7 large. I just hope they run it over .50 so I can get my a s s out of dodge. I do like the technology and hope the company is able to pull out of this - but for me its simple survival right now - I'm betting on the greed of the sharks. The only thing that concerns me is that since the announcement of the last round of equity the share price has slid when in the past it has gradually moved up. They have 33.3MM shares to sell - it doesnt make any sense to me why they have been stacking the Ask at .25 and .26 for the last couple of days when they can easily let it run a little at a time.
I've learned a lifetime of lessons from this one company and the market in general since the dot-bomb. Never again will I make the same silly mistakes.
Baja, the first thing is that my perspective has changed dramatically over the years. I originally went in as a long-term buy/hold. In April 2000, the market scared me and I lightened up. (Incidentally, at that time, no-one wanted to hear what dgurgel had to say, but I thought he made some good points). After that I tried trading for a while, that worked well ... until it stopped working ALTOGETHER. From there, I've gradually averaged down. At 25-cents a share, I don't have a huge investment here. Stated another way, it's not enough to break me but it is enough to be interesting if we get up above a half-dollar or so.
I've pretty much given up hope of $1.00 or continued NASDAQ listing ... UNLESS ... something surfaces that I know nothing about ... and the chances of that are pretty slim (not that I would know, but that lightning would strike).
On the brighter side, someone just put $7,000,000 in the kitty. As close as I can tell, it is a straight investment ... at a very favorable price, to be sure, but still hard currency. It strikes me as unlikely that anyone, individual or group, would part with that much money without a reasonable chance to earning a return with it. Of course, from their point of view 40-odd cents is a double and that won't set the world on fire for most of us.
The real issue is having a product and the talent to market it.
Do we? Can we?
I've already bet that we do and can and I see no benefit in jumping ship now.
I wish I could give you a hard time-frame, but I can't. I don't think we'll get well any time soon, so it's more a matter of stomach than anything. If you're diversified, it's not too bad. If all your easter eggs are in this basket, the colors are running pretty badly.
Fred
Fred,
what are your thoughts on GMGC getting pushed down to the small cap index. It doesnt look like we are going to see $1/share price anytime soon and the clock is ticking. This .01 cent per day thing is dreadfull to watch. What is your time horizon for this investment?
Like I said, V, the work of the devil is to test my faith!!!!!!
Fred
(Please don't ask why I'm on a "faith" kick. I don't have a clue.)
FLG
Hey, Fred! This is not exactly "new news" (already been announced by management), but it's obviously not encouraging to see it in print. Wish it would have come out yesterday, though -- like a cruel April Fools' joke
02-Apr-2002 15:12 DJ *DJ Auditor Doubts General Magic Can Remain 'Going Concern'
v
Hi, Baja. I'm not smart enough to swim with the sharks, so I just let 'em nibble at my toes. Not that I want them to, you understand.
If you can make any many trading GMGC, my hat is off to you.
Me?
Well, it's hard to say. Some folks go to church to practice their faith. I go to GMGC, I guess.
Fred
Hi Folks. I have been an investor in GMGC since Aug-2000; what a dissapointing ride. Here's hoping that the sharks will run this thing up again before the next round of financing in, I believe April (from RB board). They have 33.3MM shares to blow out and I cannot believe that they would keep the downward pressure on the price in order to reset below .20 again. Assuming that GMGC raises an additional 7MM shares the sharks are going to have approx 70MM shares to get rid of (which would take them months upon months at current trading volume).
I use to have a long term strategy for this stock, but, have come to the conclusion that the only possible way to make any money on magic (which i have yet to do) is to swim along side of the sharks. I've spent the last 2 years averaging down, and down and down and down to a point where I think I can make a few bucks if the sharks stop loading the ask every day. I am afraid though that we will break support at .23 today (of course after I spent the last 2 days buying at .26) and from there it's anybody's guess where it ends up (short term) - Good luck all.
Thanks, Pez. I got a few, too. The walls in our house are painted, but I guess we can wallpaper over the paint.
Fred
Fred don't look to me for advice
I bought at .29 (again) hoping for blue skies
Thank you, very much, "XX". I'm not good with financial numbers, but I don't think the GM deal will ever amount to a hill of beans, as far as General Magic is concerned. That seems to be a classic "Keep 'em barefoot and pregnant." deal. Apparently there's also a choke order to keep GMGC from bragging about their part in the system. All-in-all, not a great thing. Its huge advantage is that it provided a little basis for continued operation, while we try to develop more rewarding lines of business.
Obviously, as well-defined beggars, we have little in the way of leverage in negotiating any of our deals. Still we are placing a little product here and there, I gather.
Well, I won't order my Agena rocket just yet, but I might as well get a few stamps.
If cheap is youir meat
GMGC is the place to eat
But if you prefer a little fat
This ain't the place where it's at.
Fred
After looking over the filing, the correct numbers are 33,333,333 shares at (.21) per share. That puts the O/S at around 126M. Yahoo has the book value at (.07). After looking at the chart, I think I'll wait until I see a close over (.26). Then, I'll chart it again and consider my options. I'm still curious as to how the deal with GM turns into revenue. 56% customer retention with Onstar is pretty good in my view but how much of that money is going to end up on GMGC's top line?
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If the financing were done today, the result would be about 35M more common shares. That is $7M divided by (.20), which is a 20% discount on (.25). I'm not sure how I feel about that, especially when they are going to need more financing in the future. But the company seems bullish in their statement of waiting for more favorable market conditions. I was a shareholder way back. Bought in at 6.59 and sold around 16.00 at the peak of the big bull. I have watched this stock for a long time now but I must say that I am not yet convinced enough to buy back in on a fundamental basis, although technically speaking, it seems to be trying to bottom. I'm still not sure how GMGC is going to recognize revenue and have no idea what type of revenue potential exists. If anyone can clear this up, I'd be very grateful, meanwhile, I think I am going to look at some recent press and filings and see how the company is looking.
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V-Man ... Pez ... somebody ... anybody ... H-E-L-P!!
I'm suffering. I woke up with an urge to buy more of a (dare I say it) 25-cent stock. Man, I don't DO penny stocks! What's going on. Have I lost my marbles.
Just because an offer seeking to garner a mere $7,000,000 dollars was oversubscribed, is that any reason for foolish optimism?
Where is dgurgle when I need him ... off in some ragingly bullish enclave, I suppose.
Fred
Well, I'll be darned!
Using judgment: "Given the market conditions and our current share price, the company elected to raise only $7 million at this time."
And
Calling a spade a spade: "This paragraph would be included because the company is not expected to have sufficient committed cash at the time the audit report is issued to meet its cash requirements through the end of its fiscal year based upon its current cash-burn rate."
Things are looking up around here. Thanks for the news, V, you ARE da man.
Fred
SUNNYVALE, Calif.--(BUSINESS WIRE)--March 27, 2002--General Magic,
Inc. (Nasdaq:GMGC), a pioneer in voice infrastructure software, today
announced it has secured an over subscribed round of financing from a
group of private institutional investors in the amount of $7.0 million
in exchange for shares of the company's common stock. The transaction
was arranged by HPC Capital Management.
"We are pleased to have secured this financing, which will be used
to fund our current operations, including product development, sales
and professional services," said David Russian, chief financial
officer of the company. "Given the market conditions and our current
share price, the company elected to raise only $7 million at this
time. Our goal remains to raise additional funds to support our
continuing operations through the end of this year. We believe that it
is in the best interests of the company and its shareholders to delay
further fund raising at this time to give current market conditions a
chance to improve."
The company expects to issue these securities on March 27, 2002
under its "shelf" registration statement (SEC file no. 333-66126),
which was declared effective by the Securities and Exchange Commission
on Nov. 27, 2001.
"This round of financing was actually oversubscribed and it was
extremely gratifying to see this interest in both the company and its
products from the Institutional players. We are especially grateful
that such a prestigious Institution like the Special Situations Fund
would take a lead role in this financing and we particularly want to
thank them for their vision and support," said Andrew Reckles,
chairman of HPC Capital Management.
The price and the number of shares are based on a five-day average
market price of General Magic's common stock prior to March 25, 2002.
In addition the investors will receive a 20 percent discount per
common share to this average price with no warrant coverage.
The company intends to seek the additional funding necessary to
complete its funding objectives within the coming months, with the
expectation that market conditions may be more favorable at that time.
As a direct result of this decision, the company expects to receive a
report from its auditors, KPMG, on the company's financial statements
for the year-ended Dec. 31, 2001 that includes an explanatory
paragraph describing the uncertainty about the company's ability to
continue as a going concern. This paragraph would be included because
the company is not expected to have sufficient committed cash at the
time the audit report is issued to meet its cash requirements through
the end of its fiscal year based upon its current cash-burn rate.
General Magic's management team remains committed to seeking the
funding necessary to support the roll-out and adoption of its products
and services at the most opportune times.
Doggone it, Big-V, that last bit about the Series H sounds so good to me that I'm almost tempted to go over to Raging Bull for a complete explanation of just what a disaster it is and how it illustrates management's incompetence.
Nah. I won't bother.
Fred
SUNNYVALE, Calif.--(BUSINESS WIRE)--March 25, 2002--General Magic,
Inc. (Nasdaq: GMGC), a pioneer in voice infrastructure software, today
announced that both proposals presented for a vote at its March 22,
2002 Special Meeting of Stockholders were approved. The meeting was
attended by stockholders or their proxies representing approximately
88 percent of the company's outstanding shares entitled to vote at the
meeting.
The first proposal asked shareholders to approve the company's
issuance on or before June 30, 2002, of those shares of the company's
common stock for an aggregate offering price of a maximum of
$20,000,000.
Stockholders were also asked to approve an amendment to the
Company's certificate of incorporation to increase the authorized
common stock of the company from 150,000,000 to 200,000,000 shares.
"Approval of these proposals will prove instrumental in providing
General Magic with flexibility in its efforts to raise additional
capital over the next several months to assist the company in funding
its continuing operations including the product development, sales and
marketing of its Voice Infrastructure Software business and its
ongoing support of the OnStar Virtual Advisor contract," said David
Russian, chief financial officer. "General Magic is now free to pursue
additional financing to strengthen its financial position and to
provide the company with the necessary resources to succeed."
Series H Convertible Preferred Stock To Be Converted To Common
Stock By March 25, 2002
On March 11, 2002, General Magic, Inc. delivered a notice to the
holders of all of its then outstanding Series H Convertible Preferred
Stock, notifying them of its election to require the mandatory
conversion of their shares of Series H Convertible Preferred Stock
into common stock on March 25, 2002. On March 11, 2002, there were 580
shares of Series H Convertible Preferred Stock outstanding, which are
convertible into approximately 1,008,998 shares of the company's
common stock as of March 25, 2002. After the conversion of the Series
H Convertible Preferred Stock into common stock, the only remaining
outstanding series of Preferred Stock of the Company will be the
company's Series G Convertible Preferred Stock, which is held by the
company's strategic partner, General Motors Corporation.
Fred, sounds like sage advice for the time being.
As you may have heard, both the share-issuance and the share-authorization proposals passed at the Special Meeting today . . . so at least that question mark has been erased.
Lackluster reaction by the stock so far.
Will be interesting to see what events unfold over the next few weeks. The ongoing saga.
v
Nah, I was in for a penny, then in for a pound, too. Time to let my natural contrariness work for me. Lets see what next week brings.
Fred
Fred:
Glad you're surfacing and getting back on track!
Re your reverse-logic reasoning, I think you're onto something (I use it on the kids all the time . . . often works, but sometimes doesn't!!). Anyway, I agree it sure seems like there's a very good chance of a nice pop in the coming weeks following the meeting, assuming a relatively favorable resolution, the announcement of the vote, the completion of financing, the cessation of whatever capitulation selling and/or financing-related short-selling might be going on lately, wider dissemination of the General Electric news, and maybe some new-customer PR releases. One can only hope. Obviously still a highly speculative situation fraught with uncertainties, but the negatives sure seem to be adequately discounted in the stock's price currently. (Of course, I thought that at fifty cents and at a buck!)
As far as not "costing anything," well, that depend on whether or not we act on the idea!! Do you think we should throw a few more shekels at it here just for grins in case the law of contrary opinion eventually does prevail? Or is all of this just fuzzy logic?!
v
Thanks, V. Feeling a bit better. Now, whaddaya think of this idea?
GMGC was down in anticipation of their stockholders meeting. Doesn't that mean it's going to FLY, now. After all, it has always run up in the past ... even on the rumor of a meeting ... and then tanked. It seems to me contrary reasoning is valid here.
Besides, it doesn't cost anything.
Fred
OT -- Fred:
Drink that OJ, eat your chicken soup, get some rest, and get better quick!! We miss your cheerful commentary!!
v
Oh, shucks. Every time GMGC toots its horn at one of these things, the price drops. How low can it.
Posted in jest by a sick puppy.
Fred
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