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To: StockDung who wrote (893)7/13/2004 12:36:56 AM
From: peter michaelson
   of 977
I'm not aware of anything, other than the LXRS connection.

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To: afrayem onigwecher who started this subject7/14/2004 1:04:38 PM
From: StockDung
   of 977

July 14, 2004

Not long ago there was a television program called "To Tell the Truth." This was in the days after the quiz show scandals of the 1950s and before Reality TV and million dollar prizes reared their monotonous head. The premise of "To Tell the Truth" was rather simple. There were three contestants, all claiming to be the same person. As the show began, each of the contestants would stare into the camera and, with utmost sincerity, say "I am Alan Shepard, astronaut," or something of that sort. A panel of celebrities would ask the contestants a series of questions and then guess which contestant was telling the truth.

Sometimes it was tough. Sometimes the phonies seemed more authentic than the person they were pretending to be.

Sometimes it was impossible to tell who was telling the truth.

This old quiz show came to mind last week when we were reading once again about the laundry list of obscure micro-cap companies that are claiming they have been victimized by naked short selling. Short selling occurs when someone borrows shares and sells them hoping to buy them back later at a lower price. In theory, shares may not be sold short unless the brokerage firm knows it can borrow sufficient stock to cover that short position. Naked shorting occurs when no such affirmative determination has been made.

There seems to be no dispute that the practice of short selling has been much abused, and that naked shorting is one tool that has been improperly utilized. The Securities and Exchange Commission and NASD each have acknowledged the need to tighten control of short sales and crack down on these naked transactions. Regulation SHO, enacted last month by the SEC, is one attempt to address that concern - though hardly a panacea. See Regulation SHO - So Far Just So, So.

But just how widespread is this practice, and how many tiny, struggling firms have become its targets.

In other words, which of the complaining companies are telling the truth?

The answer, unfortunately, remains elusive, which is precisely why the naked short selling claims have become a convenient rationale for dozens of failing companies. Regulatory shortcomings have allowed short selling sharks to ply their trade without sufficient accountability. But just how many sharks swim in these waters?

It is impossible to tell since the extent of naked short selling is a matter of conjecture. Companies point to high trading volume and depressed share prices and claim that it is the work of short sellers. They blame brokers and market makers and clearing agencies like the Depository Trust Company. Investors, eager to understand why their holdings continue to plummet, are ready to accept this explanation because, after all, it sounds perfectly plausible.

And sometimes it is - but who is telling the truth?

Sure, naked short sales might account for deeply depressed stock prices - sometimes. There are, however other logical explanations which would just as easily explain these trading phenomena.

The first is also the most obvious: some of these companies have no meaningful value. If a company has few assets, no revenues, no substantial operations, and little realistic expectation of success, it should come as no surprise that its stock trades at pennies, or even a fraction of a cent.

High volume accompanying such meager stock prices is hardly an indication that Wall Street has discovered a hidden gem. Nor is it necessarily a sign that the naked shorters are loose. Think logically. If a stock is already trading at pennies, does it make sense to sell short? Just how many shares would the professional short seller have to sell for that exercise to be worthwhile?

And if the short seller is a pro, wouldn't he be savvy enough to find a more highly priced stock, where the potential spread and profit is significantly better?

Which brings us to a second, more logical explanation for the activity attributed to the short sellers: someone is dumping shares. Is it possible that a bump in trading volume signifies someone selling stock - rather than shorting shares? And are there circumstances where companies might want to avoid acknowledging that shares are being unloaded? You bet there are.

Some companies might be reluctant to admit they placed shares in the hands of the sellers who are dumping them on the marketplace. How might stock find its way into the hands of those sellers? There are a variety of ways, as the following indicates:

Some shares may have been registered on Forms S-8 and then issued to consultants, employees and attorneys who resell them immediately.

Other stock might have been sold to offshore investors under Regulation S, which provides an exemption from registration for shares issued to certain non-U.S. residents. Those offshore shareholders can then resell the shares overseas, immediately.

Shareholders who have held stock for at least one year can sell their holdings, without registration, under the exemptions provided by Rule 144.

Financiers who provide "equity-based" financing for small companies generally receive large allotments of registered stock in consideration for their investment. These investors may sell those shares short in anticipation of their registration, or simply wait until they have been registered and then liquidate their position. Either way, they would be trading in substantial volume.

Then there are PIPES, the popular acronym for private investments in public entities. These private investors receive large numbers of shares in return for providing funding to companies who are desperate for funding. If the PIPE investors are U.S.-based, the shares may be registered. If they are overseas, their shares could qualify for the Reg. S trading exemption. Either way, the investors would be in a position to introduce a large quantity of stock to the public float.

Companies who have been diluting their public shareholders by issuing stock to consultants or insiders, or on favorable terms to financing entities, may be loathe to admit that they are the source of a sudden spurt in volume. In that case, naked short sellers make for a convenient scapegoat.

The problem for investors, and ultimately for regulators, is to separate those companies that have truly been victimized by naked short selling, from those that have not. Ultimately, the public will have to determine who are the pretenders, and who is telling the truth.

©2004 Stock All rights reserved.


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To: afrayem onigwecher who started this subject7/15/2004 4:53:19 PM
From: StockDung
   of 977

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To: afrayem onigwecher who started this subject7/21/2004 6:12:29 PM
From: StockDung
   of 977
Subj: Poised for immense short term gains, you won't want to miss this one aka Oralla's reblade superinsistently whangdoodle untruthfulnesses Fawzia's
Date: 7/21/2004 4:08:47 PM Eastern Daylight Time
Sent from the Internet (Details)


July 20-23, 2004: EXPECT A BIG MOVE
TURN $2,000 INTO $20,000 IN A WEEK!


Last week GRXI announced a major partner doing about 1 million a week. Bigger and better partners are expected this week

GTREX, Inc. (OTC Ticker: GRXI)
5-Day Target: $.67
10-Day Target: $1.65
3-Month Target: $15.00

Gtrex News is set for this week.

GRXI (is a provider of an innovative Internet-based service for the distribution of travel reservations for the $4 trillion international travel and tourism industry. The Company’s service offering will provide a flexible, low-cost, and simplified solution for the distribution of travel services, offering travel suppliers cost savings of up to 75% compared to current and outdated distribution systems. With system launch slated for mid-2004, GTREX intends to rapidly establish itself as a superior and cost-effective alternative and supplement to existing travel distribution channels utilizing an archaic, 30-year old global distribution system (GDS) infrastructure.

GTREX will capture tens of 100 of millions in
revenue over the next 12 months.

Remember the gains from our recent Strong Buy recommendations...
CWTD in February at 90 cents before it went to $8.50, an increase of 800 PERCENT!! In March MAMA at 3.95 shortly before hitting a high of $13.30 over 400 PERCENT!!! Now we have a much BETTER situation.

GTREX, Inc. is an extremely undervalued issue relative to other players within the online travel distribution space. As evidenced by the recent IPO of, the planned IPO of Worldspan Technologies, and the private market acquisitions of, Expedia, and Hotwire, the investment community has begun to take notice of the tremendous upside potential which online travel distribution represents. A comparative grouping of public companies currently trades at a price to revenue multiple of 5.2x and at a price to earnings multiple of 107x; by contrast GTREX currently trades at 2.6x revenues and at 11x earnings for our conservative financial projections for FY 2007 (the first year in which we expect the Company to exceed 0.5% of aggregate travel bookings). As the Company rolls out its GTREX system, and begins to attract increased attention from both travel suppliers and end-user distributors, we feel that this valuation will develop inline with leading players in online travel.

GTREX, Inc. is engaged in the development, marketing and delivery of Internet based services for the direct distribution of travel reservations worldwide. This premiere service is aimed at lowering the costs for suppliers and distributors and is more flexible and easier to use than existing systems. Travel suppliers could save up to 75% off the cost of current distribution systems. GTREX will provide integrated and seamless web-based linkage from the supplier’s reservation systems direct to the systems of their selected buyers and serve as a reservation service between them, obviating the need and cost of Global Distribution Systems (GDS).

Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as: "projects", "foresee", "expects", "estimates," "believes," "understands" "will", "anticipates," or that by statements indicating certain actions "may," "could," or "might" occur. All information provided within this email pertaining to investing, stocks,securities must be understood as information provided and not investment advice. Emerging Equity Alert advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured within this email. None of the material within this report shall be construed as any kind of investment advice. I was paid 20,000 dollars.

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To: afrayem onigwecher who started this subject7/21/2004 7:28:36 PM
From: StockDung
   of 977

Form: S-1/A Filing Date: 7/16/2004

Capece Litigation. In April 2004, Louis R. Capece, Jr. filed a claim against us and numerous other defendants in the federal district court for the Southern District of Florida, alleging negligent and fraudulent acts in connection with a "naked short sale" of shares of Cybercare, Inc. The plaintiff served us with a complaint on May 17, 2004, and is seeking damages in excess of $50 million. We consider this complaint to be without merit and intend to respond accordingly. We are required to answer the complaint or otherwise plead by July 21, 2004.


U.S. Securities and Exchange Commission
Litigation Release No. 18786 / July 20, 2004
Securities and Exchange Commission v. Michael Morrell, et al., Case No. 04-80664 (S.D.Fla., filed July 16, 2004)
The Securities and Exchange Commission (Commission) announced that on July 16, it filed a complaint alleging securities fraud against two former officers of CyberCare, Inc. The SEC's complaint alleges that from at least December 1999 to May 2000, CyberCare, through Michael Morrell, its chief executive officer (CEO), and John Haines, one of its senior vice-presidents and the president of its technology division, issued false press releases and made fraudulent presentations to the public regarding orders or agreements for the sale of the Company's Electronic HouseCall System that were non-existent or grossly exaggerated. In addition, the press releases made baseless projections about future orders with entities that lacked the financial wherewithal to consummate the deals.

The complaint also alleges that Morrell and Haines reviewed and signed a Form 10-KSB that CyberCare filed with the Commission in April 2000 that they knew contained some of the same false information included in the press releases.

Finally, the complaint names as a defendant Paul Bornstein, a former registered representative of Connecticut Capital Markets LLC. According to the complaint, Bornstein created a Research Report on CyberCare in January 2000 that placed a Strong Buy recommendation on CyberCare's stock and a 12-month price target of $52 per share on CyberCare's stock (which was quoted on the NASDAQ at $11 per share at the time). The complaint alleges, however, that the research report failed to disclose that at least part of Bornstein's optimism about CyberCare resulted from his simultaneous employment by CyberCare's public relation's firm. CyberCare had hired the public relations firm in October 1999, and paid the public relations firm a monthly fee of $4,000, plus 24,000 shares of CyberCare stock. The public relations firm, in turn, paid Bornstein a monthly salary of approximately $7,500.

Based on this alleged misconduct, the complaint charges Morrell and Haines with violating Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and, as control persons pursuant to Section 20(a) of the Exchange Act, for CyberCare's violations of Sections 10(b) and 13(a) of the Exchange Act, and Rules 10b-5, 12b-20, and 13a-1 thereunder. The complaint also charges Bornstein with violations of Sections 17(a) and 17(b) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, civil money penalties, and disgorgement plus prejudgment interest against all defendants, and officer and director bars against Morrell and Haines.

Home Previous Page Modified: 07/20/2004

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To: afrayem onigwecher who started this subject7/23/2004 10:49:08 AM
From: StockDung
   of 977
Co-Editor of Jack Anderson Column Files Suit Against Internet Free Speech Advocate

July 23, 2004

Douglas Cohn, CEO of HQuotient Software and Co-Editor of famed investigative journalist Jack Anderson's Washington Merry Go Round syndicated column has filed a SLAPP suit against Max Jones, an internet critic of his company.

(PRWEB) Lefty's Bar and, a private internet community of penny stock market reform advocates, announced today that is sponsering a legal defense fund site for Texas native Max "jigfish" Jones, an internet message board critic of Vienna, VA based HQuotient Software. HQuotient, a "penny stock" trading on the Pink Sheets, offers various medical software products and services. Jones has been sued by Douglas Cohn, CEO of HQuotient for posting allegedly defamatory comments about the company on the Internet message board site Raging Bull. "Jigfish" is the internet alias under which Jones posted his comments.

The defense fund site is on the Web at:

All donations to the fund will be deposited to a trust account maintained by Jones' Virginia counsel, and will be used only for the direct expenses of his defense.

In the suit in the US District Court for Eastern District of Virginia, Alexandria Division, case #04-CV-468, Cohn alleges that Jones is behind a sinister plot to sell his company's stock short and profit from a decline in its share price. Since filing the suit the penny stock-which trades on the pink sheets under the symbol HQNT-has lost 75% of its value. Jones denies any involvement in HQNT trading or short selling, and has not been a shareholder of HQNT for several years.

Corporate suits against critics are often termed SLAPP suits (Strategic Lawsuits Against Public Participation).In contrast to most litigation, SLAPP suits are brought, not to resolve a problem, but to remove a controversy from the public arena-where the company may be loosing the battle of opinion-to the judicial arena where the "chill" and expense of defense may enable the company to use its financial resources to silence its critics.

The suit against Jones is doubly ironic in that Jack Anderson, famed investigative journalist and free speech advocate, served until recently on the HQNT Board of Directors and shares authorship of his Washington Merry-Go-Round syndicated column with HQNT CEO Cohn. Anderson will always be remembered for his dogged pursuit of the truth and his tireless defense of free speech rights. Anderson's writings have earned him a Pulitzer prize, and he has received numerous awards and citations for his defense of the First Amendment.

"Jack Anderson has always been a hero of mine," said LB&G spokesperson Thomas "Lefty" Malone. "but he seems to have slipped a cog or two lately. Why on earth would Jack condone suing a person for asking questions about the management and public claims of a public company? Since he was on the Board of Directors of the Company and closely allied with Cohn he had to have known of this action."

"Anderson seems to have had problems with his famed sense of smell in the recent past," continued Malone. "He wrote a undocumented column devoted to the psuedo issue of "naked shorting" in which he claimed that this practice was funding terrorism. Neither he not Cohn disclosed in the column that they were principals in a company claiming to have been a victim of this practice. Now he is condoning this abuse of free speech by his silence."

HQNT recently announced the resignation of Anderson from the Board of Directors of the company. According to a company statement, Mr. Anderson resigned because of serious health problems.

"In our opinion," continued Malone, "this suit is nothing but a desperate attempt to silence critics of what looks to be a failing business., an internet watchdog publication, accused the company of accounting irregularities last year. The company announced the resignation of its auditor two weeks before its annual audited financial statements were due, and has since missed deadline after deadline for filing audited statements with the Securities and Exchange Commission. Because of this delay the company has been delisted from the NASDAQ OTC-BB market and now trades on the pink sheets. Max did nothing but ask legitimate questions. We think Cohn targeted him because he is 70 years old, has heart problems, and has no resources for his legal defense."

Other HQNT woes include losing a civil fraud suit filed by the Ohio Hospital Association, who alleged HQNT misrepresented the capabilities of their software products and their corporate capabilities. Although HQNT is appealing the case, they were required to post a bond of over $500,000 to guarantee payment of the judgement should their appeal of the original default judgement be unsuccessful. HQuotient is also defending itself in a $1.9 million dollar lawsuit that alleges that HQNT committed stock fraud. Detailed information about this suit and other HQNT financial issues are available at the Our Street website, Our Street has no affiliation with Lefty's Bar and

"SLAPP suits are the last resort of a scam in most cases," said Malone. "When company officials cannot refute critics, they try to silence them through abusive use of the court system."

"Max is standing up to this abuse and fighting it," continued Malone. "but he needs your financial assistance. It's that simple. If you believe in free speech, then go the Max Jones Legal Defense site and donate."

"Maybe," said Malone, "Anderson will come to his senses and send in a pledge."

The Defense Fund is on the Web at

# # #

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To: afrayem onigwecher who started this subject7/28/2004 4:56:17 PM
From: StockDung
   of 977
"Madison & Wall assists its clients by obtaining a listing on the Frankfurt or Berlin Stock Exchange which permits European buyers to purchase U.S. stocks without the double commission they often experience otherwise. The German exchanges work similar to the AMEX with a specialist controlling the order flow."

As its name indicates, Madison & Wall Worldwide, Inc. opened its first "worldwide" affiliate operation in Munich, Germany in 2002. From that base, Madison & Wall schedules road shows designed to introdue U.S. public companies to the investment community predominantly in Germany.

Madison & Wall assists its clients by obtaining a listing on the Frankfurt or Berlin Stock Exchange which permits European buyers to purchase U.S. stocks without the double commission they often experience otherwise. The German exchanges work similar to the AMEX with a specialist controlling the order flow.

Due to the time difference, the specialist is finishing their day when trading opens in the United States. This dynamic often results in the dually listed stocks opening boldly as Europe places their orders from the concluding trading session.

Road shows typically require one full week of an executive's time. During that week they will be introduced to brokers, specialists, fund managers, analysts, and media contacts throughout the country. The European Road Show often results in substantial increases in daily trading volumes. For more information on this or other M&W services, contact our offices.

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To: peter michaelson who wrote (894)7/28/2004 9:39:09 PM
From: StockDung
   of 977
Why did not Investrends not mention the company involved was Cybercare which was involved in a stockscam? LOL

In the Matter of CyberCare, Inc.,


StockGate: DTCC Sued Again, $49M Suit Related To Elgindy; NASD Expels, Censures

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To: afrayem onigwecher who started this subject7/29/2004 4:21:27 PM
From: StockDung
   of 977

The Commission has issued a release adopting new Regulation SHO, under
the Securities Exchange Act of 1934, to replace Rules 3b-3 and 10a-2.
In addition, Regulation SHO amends and provides interpretive guidance
relating to Rule 105 of Regulation M.

Rule 200, among other things, redesignates current Rule 3b-3 with some
modifications to define ownership and aggregation of securities
positions, and includes a requirement to mark all sell orders in all
equity securities. Rule 201 remains reserved. Rule 202T, establishes
procedures to allow the Commission to temporarily suspend the operation
of the current "tick" test in Rule 10a-1, and any short sale price test
of any exchange or national securities association, for specified
securities. Rule 203, which incorporates current Rule 10a-2,
establishes a uniform Commission rule requiring broker-dealers, prior to
effecting short sales in all equity securities, to "locate" securities
available for borrowing. Rule 203 also imposes additional requirements
on designated "threshold securities." The amendment to Rule 105 of
Regulation M eliminates the shelf offering exception and provides
interpretative guidance on sham transactions designed to evade the rule.
Rules 200 - 203 will become effective 30 days after publication in the
Federal Register with a compliance date of Jan. 3, 2005, to permit firms
to make necessary programming and procedural adjustments. The Amendment
to Rule 105 of Regulation M will be effective 30 days after publication
in the Federal Register, and the interpretive guidance will be effective
upon such publication.

Through a separate order, the Commission has suspended, for a period of
one-year, the tick test provision of paragraph (a) of Rule 10a-1, and
any short sale price test of any exchange or national securities
association, for approximately one-third of stocks in the Russell 3000
index. The order also suspends the tick test provision of paragraph (a)
of Rule 10a-1 for short sales executed in any security included in the
Russell 1000 index after 4:15 p.m., and for all other securities after
the close of the consolidated tape, and until the open of the
consolidated tape the next day.

For further information, please contact any of the following attorneys
in the Office of Trading Practices, Division of Market Regulation, at
(202) 942-0772: James Brigagliano, Assistant Director, Lillian Hagen,
Alexandra Albright and Elizabeth Sandoe, Special Counsels or Peter
Chepucavage, Attorney Fellow. (Rels. 34-50103, 34-51014; File No. S7-23-

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To: afrayem onigwecher who started this subject7/29/2004 6:56:49 PM
From: StockDung
   of 977
Shareholder Q&A June 2004

Q: There has been a great deal written about naked shorting activities on the Berlin exchange. It may not affect Hartcourt at this time, but wouldn't it be wise just to remove Hartcourt from this exchange before they begin?

A: We have reviewed Hartcourt's share trading activities on the Berlin stock exchange for the last two months and did not find any irregularity. We will continue to monitor the trading activity of Hartcourt shares on the Berlin stock exchange.

Q: Is there a possibility that Hartcourt will implement a centralized method of conducting "online sales and distribution" of products offered by its subs?

A: Online sales and distribution is a very different selling methodology from the conventional ones. When China's legal, business and banking environment is ready for such online sales/distribution, we will do so.

Q: Can you expand upon Hartcourt's relationship and % of sales represented by Samsung monitors (which were 60% of 4th quarter sales)? How much has that percentage changed due to the Challenger acquisition?

A: Hartcourt's subsidiaries have forged a close working relationship with Samsung. We recorded significant revenue increases on the Samsung products in the first 6 month of this year. The overall share of Samsung revenue within the Hartcourt group decreased due to the Challenger acquisition, which is favorable in terms of diversification.

Q: Hartcourt in the past always indicated that a r/s was not being considered. It was amply stated many times. Recently the answer to this inquiry seemed to tell a different story, namely that there could indeed be a r/s in that an advising entity might well suggest that… Without going into the pros and cons of the r/s as a strategy, I would ask you for one straight answer, YES or NO. Would you consider a r/s under any circumstance?

A: We don't think there is a need for nor are we consider a reverse split at this time.

Q: What is the status of Sinobull spin-off?

A: Sinobull, a wholly owned subsidiary of Hopeful Internet Technologies Ltd, was sold to First Shanghai's subsidiary, First Information Technology Ltd. When completed, Hartcourt will own 10.5% of First Information Technology. The agreement for sale and purchase of shares has been signed between Hartcourt and First Information Technology Ltd.

Q: Have all the sub owners been cooperative in the streamlining/accounting software installation process so far? Has the implementation progress been easier or more difficult than you planned up to this point?

A: All the sub owners have been supportive of the realignment of the finance function as well as the ERP implementation. Management has taken this opportunity to significantly upgrade the accounting accuracy, reporting and analysis capability as well as the expertise of the staff. The ERP implementation schedule is on target.

Q: What is the date and place of the shareholders meeting?

A: The annual shareholder meeting will be held at Luxor Hotel & Casino in Las Vegas on September 17, 2004.

Q: Any change in the status of the SEC lawsuit? What is the next date for hearing/trial?

A: The next date for trial is March 29, 2005.

Q: What kind of effect will the NEC/Digital China deal have on Hartcourt and its subs? From their press release it seems they will be aggressively expanding throughout the China market.

A: NEC/Digital's China expansion will not have much impact on Hartcourt's business due to different core products and market segmentations.

Forward-looking statements
The statements made in this Q&A, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this document pertains. The actual results of the specific items described in this document, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this document, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

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