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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."

insidewallstreet.com

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.,
sec.gov

SEC CHARGES TWO FORMER OFFICERS OF CYBERCARE, INC., AND A FORMER OUTSIDE ANALYST WHO COVERED CYBERCARE, WITH FRAUD
sec.gov

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

investors.com

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To: afrayem onigwecher who started this subject7/29/2004 4:21:27 PM
From: StockDung
   of 977
 
SHORT SALES, FINAL RULE AND INTERPRETATION

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-
03)

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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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To: peter michaelson who wrote (894)7/31/2004 7:01:26 PM
From: StockDung
   of 977
 
Notice Financialwire doesnt even refer to their Stockgate story on naked shortselling where Cybercare was the unmentioned stock in question. "StockGate: DTCC Sued Again, $49M Suit Related To Elgindy; NASD Expels, Censures"
investors.com

These people are unbelievable and full of sheet.
=========================================

SEC Charges 'Outside Research Analyst' With Failing 17(b) Disclosures

Jul 30, 2004 (financialwire.net via COMTEX) -- (FinancialWire) The U.S. Securities and Exchange Commission has charged an "independent" research analyst with failing to disclose conflicting relationships and compensation as required by SEC Regulation 17(b).

The charges relate to a "Strong Buy recommendation on CyberCare's (CYBR) stock and a 12-month price target of $52 per share" in a report written in 2000. Dozens of companies on all exchanges and trading platforms in the past year have been associated with questionable research practices and disclosures, including Ecolab (ECL), Flight Safety (OTCBB: FSFY), and Medifast, Inc. (MED).

Cybercare is currently trading at $0.017, and has fallen from NASDAQ (NDAQ) to the pink sheets.

The SEC had previously told FinancialWire that it intends to enforce Regulation 17(b) provisions so that investors may have a fully transparent understanding of any potential agenda or lack thereof, but until these charges, enforcement had been almost non-existent.

The U.S. Securities and Exchange Commission Regulation 17(b) states:

"It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof."

The SEC has told FinancialWire that this regulation means full and complete compensation for research and any other services provided, including amounts and sources, must be disclosed in "every press release" as well as other published documents. The SEC states that third party compensations must include the relationship of the payer to the issuer.

In an email to FinancialWire as recently as January 5, 2004, John J. Nester, a spokesperson for the U.S. Securities and Exchange Commission confirmed that regulators interpret 17(b) to mean that specific compensation information must be contained in press releases, and that a link to a disclosure somewhere else, for example, is a violation of the regulation. He further stated that the compensation disclosure required by the SEC includes "amounts and sources in any press release mentioning the company under research coverage."

The SEC charged two former officers of Cybercare, former CEO Michael Morrell and former Senior VP John Haines, as well as Paul Bornstein, an outside analyst, with fraud.

In his January 2000 research report, Bornstein "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."

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.

At the same time, the SEC has been offered a settlement by Connecticut Capital Markets, LLC, which employed Bornstein, and Richard L. Klass, the firm's principal who was described in the documents as "responsible for adopting Connecticut Capital's compliance and supervisory procedures and directly supervising the firm's Managing Director of Research."

The settlement notes that "although the research report appeared to be created by an independent research analyst for general circulation, it failed to disclose that the Research Analyst was simultaneously employed and paid by a public relations firm engaged by CyberCare to promote the company. As part of his duties at this public relations firm, the Research Analyst assisted CyberCare with, among other things, the creation of press releases and investor presentations. In fact, the Research Analyst maintained an office at the public relations firm, and spent all of his time working from that office from at least December 1999 to May 2000.

It added: "the Research Analyst's simultaneous employment at Connecticut Capital and CyberCare's public relations firm created a conflict of interest that was not disclosed to investors."

Further, it said, "the product orders highlighted in the Research Analyst's research report were fictitious or grossly exaggerated, and the research report's price target was ultimately based on these fictitious and exaggerated orders.

"After the January 25, 2000 research report was published, Connecticut Capital sent it to its clients and potential clients. In addition, CyberCare included the research report in marketing materials and on its website."

Other companies in the FinancialWire series about questionable research practices and disclosures have included Horizon Medical (HMP), Nymox (NYMX), Genesis Technology Group (GTEC), Martek Biosciences (MATK), Ecolab (ECL), Clorox (CLX), Dial Corp. (DL), AdZone (ADZR), American Water Star (OTCBB: AMWS), Markland Technologies (MRKL), Transnational Financial Network (TFN) and Telkonet (OTCBB: TLKO), Cytomedix (CYME), LocatePlus (LPLHA), Rockport Healthcare (RPHL), Universal Express Co. (USXP), Lifestream Technologies (LFTC), Home Solutions of America, Inc. (HOM), AirRover Wi-Fi Corporation (AVWF), Raike Financial Group (RKFG), CareDecision Corp. (CDED), Life Energy and Technology Holdings, Inc. (LETH), TeraForce Technology Corporation (TERA), and Flight Safety (OTCBB: FSFY);

Also, Playtex Products (PYX), Ericware Technologies (ECWR), NuTech Digital, Inc. (NTDL), Terra Nostra Technology Ltd. (TNRL), and NanoSignal Corp. (NNOS)., DNAPrintGenomics (DNAP), Syndication Net.com (SYCI), Quintek Technologies (QTEK), GeneLink (OTCBB: GLNK), Quality of Life Health Corp. (QLHC), Environmental Remediation Holding Corp. (ERHC), Cornerstone Entertainment (OTC: CNRH), Medifast, Inc. (MED), Workstream, Inc. (WSTM), SIGA Technologies (SIGA), Sub Surface Waste Management of Delaware (SSWM), Xfone, Inc. (XFNE), CyberCare's (CYBR), Offshore Systems International (OFSYF)(OSI), American Ammunition, Inc. (AAMI), Electric City Corporation (ELC), Digital Recorders Inc (TBUS), Sonoran Energy, Inc. (SNRN), AeroCentury (ACY), CTI Industries Corp. (CTIB), MFIC Corporation (MFIC), Vermont Pure Holdings Inc (VPS), CytRx Corporation (CYTR), Misonix (MSON), Destiny Media Technologies (DSNY), BioSante Pharmaceuticals Inc (BPA), a21, Inc. (ATWO); and

Also, OrderPro Logistics (OPLO), Military Resale Group, Inc. (MYRG), Timber Resources International, Inc. (TMBN), OptimumCare Corporation (OPMC), Command Security (CMMD), Molecular Imaging Corporation (MLRI), TechnoConcepts Inc. (OTCBB: TCPT), Sequiam Corporation (SQUM), MEMS USA, Inc. (MEMS), Provectus Pharmaceuticals, Inc. (PVCT), eFoodSafety.com (EFSF), Intelligent Business Systems Group International, Inc (IGII), Chilmark Entertainment (CMKK), Tech Laboratories, Inc. (TCHL), BodyScan Corp. (BDYS), Wireless Frontier Internet, Inc. (WFRI), Ableauctions.com, Inc. (AAC), UFP Technologies (UFPT), Systems Evolution Inc. (SEVI), Resin Systems, Inc (RSSYF), Touchstone Applied Sciences (TASA), Daxor Corporation (DXR), JMAR Technologies (JMAR), WWA Group Inc. (WWAG), TravelZoo (TZOO), I-Trax (DMX), Axonyx Inc. (AXYX), ACL Semiconductors, Inc (ACLO), ImageWare Systems (IW), DXP Enterprises (NASDAQ DXPE), and Epixtar Corp. (EPXR).

Specifics on each company may be searched at the Investrend PowerSearch site at investrend.com by pasting in or typing the search term "17(b)."

For up-to-the-minute news, features and links click on financialwire.net

FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on investrend.com

The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: investrend.com



financialwire.net


(C) 2004 financialwire.net, Inc. All rights reserved.



© 1997-2004 MarketWatch.com, Inc.


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To: StockDung who wrote (899)8/3/2004 10:31:28 PM
From: afrayem onigwecher
   of 977
 
PROSECUTION FUMBLES




nypost.com

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To: afrayem onigwecher who started this subject8/4/2004 12:26:40 PM
From: StockDung
   of 977
 
Dutton Dismisses SEC Probe of EasyLink, Dow Jones Article as 'Presidential Politics'

Aug 4, 2004 (financialwire.net via COMTEX) -- (FinancialWire) Robert M. Davis, the JM Dutton & Associates research analyst covering EasyLink (EASY), has attributed the U.S. Securities and Exchange Commission investigation of the company's "accounting problems," and the subsequent article by Dow Jones (DJ) to "a bit of pre-convention Presidential politics, with EasyLink caught in the middle."

Saying the story is "gradually" fading away, the analyst cited a Motley Fool article on July 6 that suggested that the SEC is anxious to show that it is willing to investigate a small company along with Verizon (VZ) and Nortel Networks (NT) because the "SEC doesn't want to miss another potential major scandal or get upstaged by a New York attorney general."

The current Dutton research note inexplicably does not describe any fundamental analysis of the gyrations, noting "the stock's momentum-based indicators have begun hinting at the development of a base and the beginning of a recovery. It appears that this buying opportunity may be at hand."

The research note also does not describe the analyst's thinking in 2002, when he was similarly ebullient but failed to call attention to any red flags in the company's accounting of barter that the media has noted the SEC now finds questionable (see FinancialWire, July 16, 2004).

It was during that period, too, that SEC Chair William Donaldson was on the company's board, as well as its audit and compensation committees.

EasyLink CEO Thomas Murawski will host a webcast and conference call tomorrow at 10:30 a.m.

There was also no further response to McGraw-Hill's (MHP) Business Week assertion in December, 2002, that in its initial report, Dutton had not made complete compensation disclosures as required by SEC Regulation 17(b).

The report "does not explicitly say that EasyLink paid Dutton," said BusinessWeek, but reporter Gary Weiss said when questioned, "the firm's president, John M. Dutton, confirmed the payment and said there was no understanding that Dutton would provide favorable reports."

Perhaps tellingly, Tuesday's email blast from Dutton that summarized the analyst's research note, located at jmdutton.com , stated that the Dutton research "currently costs US $33,000 prepaid for one year." It mentions further that "specific company compensation" is detailed on each report and note.

The report's disclosure did in fact differ with the email newsletter disclosure, saying EasyLink had paid Dutton & Associates $48,000, not too different from the Business Week allegations of a year and a half ago.

In a letter to the panel developing "Best Practices Guidelines" for the CFA Institute, on May 19, 2004, however, Dutton had stated, "We believe it is germane to an investor to know the total and nature of all compensation received by an analyst/firm from the company on which it is issuing research."

Independent analysts who reviewed the current report said they found it highly unusual for an analyst to focus on stock price rather than company fundamentals, and especially to not discuss or reference fundamentals at all, not to mention its dismissal of an SEC investigation and media article as "Presidential politics."

The analyst's biography does not indicate that Davis has been or is currently credentialed in any phase of the Chartered Financial Analyst program; only that he has "applied for membership" in AIMR, now the CFA Institute.

Donaldson has since revealed that in April, 2003, he sold his holdings in EasyLink, whose chair, Gerald Gorman, had worked at Donaldson, Lufkin & Jenrette, the firm that Donaldson had co-founded, as well as holdings in several other companies, including Halliburton (HAL) and Freddie Mac (FRE), altogether worth between $11 million and $35 million.

On September 2, 2002, when Dutton's research was released, the company traded at $2.60. A steady decline followed so that by the time of the Business Week article December 31, 2002, the stock was trading at $0.61, a drop of 426%, and in danger of losing its NASDAQ (NDAQ) listing. The company did not trade above $1 again until July, 2003. It's recent price was $1.34.

EasyLink, previously known as Mail.com Inc., went public in 1999, and its shares rose to a high of $271, after adjustments for splits.

"UNDERVALUED"?, asked Business Week. It said the Dutton report gave EasyLink a "speculative buy rating," with a 12-month price target of $3.25, and in a departure, referenced "technical indicators" and trading patterns rather than fundamentals for the "target" and "rating." It noted Donaldson's presence on the "strong board of directors" and said the company "appears to be undervalued."

The subsequent Dow Jones' (DJ) Wall Street Journal stated the SEC has "confirmed that it tapped an outside lawyer, Daniel Nathan, an attorney with the Commodity Futures Trading Commission, to monitor the agency's staff investigation of EasyLink. The technology company said last week that the SEC is investigating its accounting for advertising barter deals in 2000, when Mr. Donaldson was a board member." It also occurred in late 2000, when Dutton was providing "independent analyst coverage." The deals were valued at $3 million.

WSJ said it had information that the SEC is "moving toward building a case against the company and perhaps a corporate official." It said "Donaldson, 73, has recused himself from the case because he was a member of the company's board from 1998 to 2002, sitting on its audit and compensation committees."

The U.S. Securities and Exchange Commission Regulation 17(b) states:

"It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof."

The SEC has told FinancialWire that this regulation means full and complete compensation for research and any other services provided, including amounts and sources, must be disclosed in "every press release" as well as other published documents. The SEC states that third party compensations must include the relationship of the payer to the issuer.

In an email to FinancialWire, John J. Nester, a spokesperson for the U.S. Securities and Exchange Commission, confirmed that regulators interpret 17(b) to mean that specific compensation information must be contained in press releases, and that a link to a disclosure somewhere else, for example, is a violation of the regulation. He further stated that the compensation disclosure required by the SEC includes "amounts and sources in any press release mentioning the company under research coverage."

The SEC had previously told FinancialWire that it intends to enforce these provisions so that investors may have a fully transparent understanding of any potential agenda or lack thereof.

In a January 2000 research report, the SEC said outside analyst Paul Bornstein, who it has charged with 17(b) violations and fraud, "failed to disclose that at least part of Bornstein's optimism about CyberCare (CYBR), then on the NASDAQ (NDAQ), resulted from his simultaneous employment by CyberCare's public relation's firm.

A "Standards for Independent Research Providers" at firstresearchconsortium.com , which may be adopted without fee by any qualifying independent research provider, lists a number of firms that adhere to the SEC regulations, as well as additional ethical and transparent practices. Dutton has not adopted the "Standards."

While independent research by standards-driven providers are growing in legitimacy, according to the Dow Jones (DJ) in a recent article, the article quoted Lou Thompson, president of the National Investor Relations Institute, which had issued new Guidelines in 2002 endorsing legitimate "paid-for" research, as warning of "various mutations of paid-for research."

The compensation "oversight" noted by Business Week for Dutton's EasyLink research was not the first for a company enrolled for research by Dutton, however.

The chat room postings connect Dutton to Investrend Research (http://www.investrendresearch.com ) , quoting an article in Wall Street Research Online Magazine by Ben Mattlin, headlined "An Independent and Pure Research Shop."

The article said that Dutton "founded Investrend . from which he parted to start the new company, taking many of the analysts with him." Mattlin quoted Dutton as saying "The more sunlight that shines on every step of the process, the better for everybody." Mattlin further stated, "Dutton's back-to-basics philosophy sounds refreshingly honorable and extraordinarily well timed." Mattlin has since said he had checked his notes and "evidently misunderstood Mr. Dutton when he told me about the 'model' he had 'successfully built' while president and director of research at Investrend Research . and so forth."

Mattlin further stated, "I shall make a note of the correction on any reprints of the article I distribute, including the one on my own personal web site . I apologize for the oversight."

When Dutton started his company in September, 2001, he did indeed list several Investrend analysts, many of whom have since returned to Investrend, and several companies under coverage by Investrend were subsequently "covered" by Dutton. Some later stated they thought they were "still" being covered by Investrend despite the name difference, and several companies in contact with Dutton believed Dutton was still with Investrend a year later.

In short, the "transition" was not precisely bathed in "sunlight." Dutton's new website stated that Dutton & Associates "was founded by John M. Dutton on the model he successfully built while president and director of Investrend Research."

The problem, according to Investrend Communications, Inc., is that Dutton, who was terminated for cause in July, 2001, wasn't even associated with Investrend Research when it was founded several years earlier, in 1996, as the first, largest and pioneering independent research provider, and Dutton had no input into the model or policies of Investrend. Dutton was president of the research division for only about two years while the actual founder was involved in an unrelated venture.

Nevertheless, his company's new coverage descriptions were virtually word-for-word with those he had inherited at Investrend Research.

Armed with the misinformation of the Mattlin and subsequent promotional material listing Dutton as variously the "founder" or "model builder" at Investrend, chat rooms headlined the Easylink investigation as "INVESTREND/DONALDSONGATE."

Investrend Research said it was approached by a representative of EasyLink in March, 2002, about possible coverage, but subsequently did not provide the coverage. "We most certainly had no relationship to the coverage or anything else associated with Mr. Dutton after July, 2001," stated a spokesperson.

"Investrend Research was the pioneer, developing the standards and models now followed by a small industry of legitimate independent research providers; it remains the largest and most effective, and we stand on our own," he said.

Companies in the FinancialWire series about questionable research practices and disclosures have included Horizon Medical (HMP), Nymox (NYMX), Genesis Technology Group (GTEC), Martek Biosciences (MATK), Ecolab (ECL), Clorox (CLX), Dial Corp. (DL), AdZone (ADZR), American Water Star (OTCBB: AMWS), Markland Technologies (MRKL), Transnational Financial Network (TFN) and Telkonet (OTCBB: TLKO), Cytomedix (CYME), LocatePlus (LPLHA), Rockport Healthcare (RPHL), Universal Express Co. (USXP), Lifestream Technologies (LFTC), Home Solutions of America, Inc. (HOM), AirRover Wi-Fi Corporation (AVWF), CareDecision Corp. (CDED), Life Energy and Technology Holdings, Inc. (LETH), and Flight Safety (OTCBB: FSFY);

Also, Playtex Products (PYX), Ericware Technologies (ECWR), NuTech Digital, Inc. (NTDL), Terra Nostra Technology Ltd. (TNRL), and NanoSignal Corp. (NNOS)., DNAPrintGenomics (DNAP), Syndication Net.com (SYCI), Quintek Technologies (QTEK), GeneLink (OTCBB: GLNK), Quality of Life Health Corp. (QLHC), Environmental Remediation Holding Corp. (ERHC), Cornerstone Entertainment (OTC: CNRH), Medifast, Inc. (MED), Workstream, Inc. (WSTM), SIGA Technologies (SIGA), Sub Surface Waste Management of Delaware (SSWM), Xfone, Inc. (XFNE), Offshore Systems International (OFSYF)(OSI), American Ammunition, Inc. (AAMI), Electric City Corporation (ELC), Digital Recorders Inc (TBUS), AeroCentury (ACY), CTI Industries Corp. (CTIB), Vermont Pure Holdings Inc (VPS), CytRx Corporation (CYTR), Misonix (MSON), Destiny Media Technologies (DSNY), BioSante Pharmaceuticals Inc (BPA), Sonoran Energy, Inc. (SNRN), a21, Inc. (ATWO); and

Also, OrderPro Logistics (OPLO), Military Resale Group, Inc. (MYRG), Timber Resources International, Inc. (TMBN), OptimumCare Corporation (OPMC), Command Security (CMMD), Molecular Imaging Corporation (MLRI), TechnoConcepts Inc. (OTCBB: TCPT), Sequiam Corporation (SQUM), Provectus Pharmaceuticals, Inc. (PVCT), CinTel Corp. (CNCN), eFoodSafety.com (EFSF), Intelligent Business Systems Group International, Inc (IGII), Chilmark Entertainment (CMKK), Tech Laboratories, Inc. (TCHL), BodyScan Corp. (BDYS), Wireless Frontier Internet, Inc. (WFRI), Ableauctions.com, Inc. (AAC), Human BioSystems (HBSC), World Golf League, Inc. (WGFL), Gaming & Entertainment Group, Inc. (GMEI), UFP Technologies (UFPT), Systems Evolution Inc. (SEVI), Resin Systems, Inc (RSSYF), Touchstone Applied Sciences (TASA), Daxor Corporation (DXR), JMAR Technologies (JMAR), TravelZoo (TZOO), I-Trax (DMX), Axonyx Inc. (AXYX), ImageWare Systems (IW), DXP Enterprises (NASDAQ DXPE), and Epixtar Corp. (EPXR).

For up-to-the-minute news, features and links click on financialwire.net

FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on investrend.com

The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: investrend.com



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© 1997-2004 MarketWatch.com, Inc.


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To: afrayem onigwecher who started this subject8/4/2004 12:42:35 PM
From: StockDung
   of 977
 
Investrend Research Announces Investment Opinion on Starnet Communications, Inc.
Author/s:
Issue: Oct 21, 1999
Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 21, 1999--

Starnet Communications, Inc. Recommendation of Starnet Communication (OTC BB:SNMM) as a STRONG SPECULATIVE BUY is reinstated by PAR analyst based on clarifying situation. The new update report on Starnet is being distributed by Investrend Research.

An update report covering Starnet Communications, Inc. (OTCBB:SNMM) by PAR Supervisory Analyst John M. Dutton was issued today by Public Analysis & Review (PAR), the unique professional independent analyst program administered by the non-profit Investors Research Institute, Inc.. PAR reports are distributed by Investrend Research. According to Gayle Essary, Investrend president, Mr. Dutton reinstated his recommendation at $3 1/16 on October 16 in Investrend's PAR Research Notes, published daily on Investrend's web site at www.investrend.com. Starnet's current price is $4 5/8. A copy of the report, including in Adobe pdf format, is available from the Investrend web site at www.investrend.com.

The PAR report contains the reasons given by the analyst to reinstate Starnet his investment recommendation. They are summarized as follows: The reinstatement of the recommendation of Starnet, withdrawn in September due to the RCMP raid, is based on:

Legal Risks Assessable: The favorable ruling of Judge Williamson on October 15th to grant Starnet's Motion, and then immediately deny Las Vegas Casino's request to stay the ruling, has contributed substantially to the legal situation at SNMM becoming more quantifiable. There are risks to any legal process. However, based on talks with the Company, it appears the Crown (the British Columbia authorities) would need to greatly stretch to bring and obtain a conviction on gambling charges exceeding inadvertent misdemeanor violations of the bookmaking statutes. More serious charges would carry an attendant heavy burden of proof and legal extrapolation, which the Company does not feel either the facts or evidence can support. After talks with the Company and its General Counsel, we expect the Company can address the remaining legal issues effectively, and pursue removal of the Crown's restraining order on its cash.

Growth in Franchise Value: Starnet is a leading player in the Internet gaming industry. Its licensees account for over 35% - 40% of all Internet gaming sites. Its license-marketing utilizes strong sales and marketing programs, offers the most extensive gaming venues, and has a low initial license fee. Pari-mutuel products will be introduced shortly and its World Gaming 2000 software is expected to be introduced early in the new calendar year. Starnet now has the largest number of licensees of any company at 51, up from the initial 1 in Q4 of fiscal 1998. The culmination of its licensing efforts will be an increasing and diversified license portfolio participating in the net revenue streams of its 51 or more licensees. At its present size, earnings can also grow from internal means, as well as by the sale of additional licensees. Significant internal profit gains can be achieved over time by introducing programs aimed at assisting licensees improve their operations and marketing, and hence net revenues. By any measure, we believe the present "franchise value" of Starnet far exceeds its present market value.

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To: afrayem onigwecher who started this subject8/4/2004 12:50:54 PM
From: StockDung
   of 977
 
The mighty Taglich & JM Dutton get WSJ treatment, lol:

ANALYZING THE ANALYSTS

See complete coverage of the heightened scrutiny of stock analysts at wsj.com/analysts

Amid Shrinking Research Pool,
Companies Buy Their Coverage

Faced With the Prospect of Being Ignored,
Public Firms Pay Fees for Analyst Reports
By SUSANNE CRAIG
Staff Reporter of THE WALL STREET JOURNAL

Friedman's Inc. became a Wall Street orphan last year when ABN Amro Bank NV, the only major financial firm to publish research on the jeweler's stock, closed its U.S. stock-analysis operations.

But Friedman's didn't go begging for other research coverage -- it went out and bought some.

The small Savannah, Ga., firm turned to J.M. Dutton & Associates, which for a flat annual fee of $25,000 will publish research on almost any publicly traded company. Founder John Dutton says he doesn't guarantee positive ratings, though 86% of his firm's clients that are rated receive either "buy" or "strong buy" ratings or some similar variation. And clients like Friedman's say they don't mind that it looks like they are paying for bullish coverage. Says Friedman's Chief Executive Officer Bradley Stinn: "We just want people talking about us."

Critics say investors should take such "bought" coverage with a grain of salt. "It's a lot like using an online dating service -- you wonder what is wrong with them," says Henry Hu, a corporate and securities law professor at the University of Texas. "You don't see Cameron Diaz putting herself online to find a date."

It's a fact of life on Wall Street. With 6,384 publicly traded companies on the Nasdaq and New York Stock Exchange alone, you need research analysts to cut through the clutter and get the word out to investors. But more companies are being shut out. Wall Street research departments are being pared as firms struggle amid falling revenue and regulatory overhaul that no longer will allow them to pay for research with investment-banking revenue. During the past two years, research coverage for U.S. companies dropped about 20%, to 4,189 firms, according to Multex Data, a research firm.

Figures tracked by the Nasdaq Stock Market, where many small stocks trade (as well as some of the largest ones), show that 44% of its 3,611 companies have no analyst coverage at all, and an additional 14% are covered by just one analyst. For instance, Goldman Sachs Group Inc. covers 1,848 companies, down 17.7% from September 2001. And Deutsche Bank AG recently discontinued research coverage of Charles Schwab Corp. because an analyst left.

Firms that get paid to publish reports have been around for years. And most independent research firms generate cash by selling their stock analysis to big institutional clients. But more companies seem to be willing to pay for research today as Wall Street's coverage universe shrinks.

Taglich Brothers Inc., which has an investment-banking arm as well as individual and institutional clients, began offering companies research for a fee in 1999. All clients pay a $1,750 monthly fee, plus a $5,000 retainer. Its client base has grown from just 15 clients in 1999 to 50 today.

Other firms are just starting out. New York-based Chatsworth Spelman Associates Ltd. was founded three months ago and charges companies $15,500 annually for coverage. President Guy Cohen says the company's analysts work on retainer and like other firms of its ilk, it says it doesn't guarantee a rating. He says he hopes to benefit from the regulatory settlement that will force Wall Street firms to distribute independent research.

The trend is part of the broader fallout from new regulatory scrutiny on Wall Street research. Regulators have alleged that securities firms issued overly rosy research reports simply to land more-lucrative investment-banking business. Under a regulatory settlement announced in December, most of the nation's largest securities firms will be required to pay a total of $450 million over five years to buy stock reports from independent-research firms that don't do investment-banking business.

Securities regulators will designate as many as 10 independent research firms that will provide stock reports to brokerage firms, which will be required to provide independent research to investors alongside their research.

J.M. Dutton, based in El Dorado Hills, Calif., was founded two years ago and so far nearly 50 companies have paid more than $25,000 each for one year of research coverage, primarily small-capitalization firms such as Leather Factory Inc. and Rawlings Sporting Goods Co. J.M. Dutton currently has no "sell" ratings, just four "neutral" ratings and a handful of companies where a research rating is pending. The rest rate "strong buy," "speculative buy" or some variation. Mr. Dutton says he is unlikely to pick up coverage on companies the firm doesn't like, which is why it doesn't have any sell ratings.

In addition to research, J.M. Dutton organizes investor roadshows for companies. Mr. Dutton concedes that his firm has benefited from the bear market and stricter regulatory environment. "I couldn't have asked for a more favorable event," he says. "All these services are paid for one way or another, and thanks to the regulatory environment it is all out in the open."

More than what the analysts write about them, clients like Friedman's Mr. Stinn say they are hoping J.M. Dutton's research will increase their profile, and trading, among institutional investors. It seems to have worked: In the month after J.M. Dutton launched coverage in November 2002, the firm says Friedman's average daily trading volume jumped 11.6% to 78,000 shares a day. Its stock price increased almost 12% to $8.89 in the first month of coverage. In 4 p.m. Nasdaq Stock Market trading Tuesday it was at $9.95, up 29 cents.

Scott Johnston, chairman and chief investment officer of Sterling Johnston Capital Management, which has $600 million under management, says he keeps 10 to 12 independent-research firms, including J.M. Dutton, on retainer, paying anywhere between $15,000 and $50,000 each for their research.

"We go to five or six different sources for information," says Mr. Johnston. "We don't mind if the issuers are paying. You just need to be aware of the fact a company is paying for the research, just as you need to know if an analyst's firm has an investment-banking tie."

Write to Susanne Craig at susanne.craig@wsj.com

Updated March 26, 2003

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To: afrayem onigwecher who started this subject8/4/2004 12:53:48 PM
From: StockDung
   of 977
 
Investrend are just scammy promoters. Go back in time and see the UNBIAS reports Investrend wrote about.

web.archive.org*/http://investrend.com


MAWI AND SNMM TO NAME A FEW. THEIR TRACK RECORD IS RECOMMENDING STOCKS WHICH ENDING UP GOING TO ZERO IN A FEW YEARS. LOL

THE WAYBACK MACHINE DOES NOT LIE!!

ITS QUITE A CON GAME THEY HAVE GOING.

M&A West, Inc.
(NASD OTCBB: MAWI)

Q1 2000 Update

Darren E. Robinson, CFA

Analyst

Now available in pdf

Date of Report:

Oct. 5, 1999

Shares Outstanding:

11,000,000

Recent Stock Price (1):
$5.25
Estimated Float:
3,000,000

Price Range: May 17/99-Sept. 30
$4.125 - $20.00
% Institutionally Held:
0%

Industry Sector:
Internet Venture Capital
Recommendation:
Buy

30-Day Avg. Volume:
52,000
12 Mos. Target Price
$14-$16

Earnings & P/E

Fiscal Period (Mar.31)
Primary EPS
P/E

1999 Actual
$0.01
525X

2000E
$0.49
10.7X

Buy recommendation is reaffirmed for M&A WEST.

Target price increased and time frame decreased since coverage initiated.

Basis of Recommendation

Company profitable since current business model was introduced which is highly unusual in this sector.

Stock price is down significantly from its 52 week high of $20.00. Current price is attractive at these levels based on revenue growth potential.

Business model facilitates a shorter product cycle. Intention is for each subsidiary in stable to be a separate public entity within 8-12 months. In other words, product cycle is short which lowers the probability of carrying non-productive asset on books.

Market cap to forecasted revenue very favorable at approximately 5.3X.

Investment Highlights

M&A West, Inc. (MAWI.OB) develops, invests in, and operates Internet and technology related companies. Its strategies include the internal development and operation of majority owned subsidiaries, as well as investments in other Internet companies, directly or through venture capital arrangements. Shareholders are provided participation in client companies via M&A West investments.

M&A West's strategy is four fold in that their primary business objectives are:

to become a meaningful player in the acquisition and development of Internet and technology companies

to provide seed capital to newly emerging Internet companies

to provide a full line of business services to emerging micro-cap and small-cap companies to increase awareness of their business

to create and grow offshoot Internet-related companies under the M&A West, Inc. umbrella

With the proliferation of Internet related investment vehicles, M&A WEST offers investors a one stock play on the Internet by offering investments involved in both business to business, and business to consumer. Industry estimates are that these two avenues will grow to one trillion dollars in the next 4-6 years, an increase of over 3000% from current levels.

Despite the recent correction in Internet related stocks, investors clearly have not lost their appetite for new issues and will continue to pay a premium for quality Internet related issues.

Since the initial report dated July 1, 1999, M&A West has maintained the same business model and has executed a few significant transactions. The company continues to focus on investing in early stage Internet related companies. Some of the investments worth noting are:

Digital Bridge, Inc.: provides e-commerce, web site design, hosting, and Internet marketing services. The company announced on September 29, 1999, that it will be spinning off Digital Bridge as a separate public company. Shareholders of record on September 30, 1999, will receive one share of Digital Bridge for each two shares of MAWI held. Digital Bridge should commence trading within a few weeks.

Virtuallender.com, Inc. (OTC BB: VLDC): a publicly traded company engaged primarily in electronic mortgage lending.

Virtualwagering.com, Inc.: provides sports betting and casino-style gaming on the web. The site features live sports scores for all major sporting events.

Virtualgroceries.com, Inc.: plans to offer online ordering and home delivery of gourmet foods and wine, as well as recipes, kitchen items, cookware, and gift items from specialty stores.

Workfire.com, Inc. (OTC BB: WKFR): develops and markets software and services that enhance performance of Internet access. Proprietary technology enables multiple distributed computers to work together to increase Internet performance and reliability.

M&A West reported first quarter results as follows:

Net Income for Q1/00 was $1,782,257 on revenue of $3,458,202. Earnings per share for the quarter were $0.16, ahead of internal estimates.

Revenue

M&A West derives revenues as follows:

The company enters into contracts with clients usually for a minimum one-year period. Because they are investing in early stage companies, M&A West typically takes a significant portion of their revenue in the form of equity. This method allows the investee companies to utilize their cash for internal and external growth and provides M&A West assets with a much higher growth potential than cash. The investment in Workfire.com is a typical example of M&A West?s investment method. M&A West entered into a contract with Workfire to provide consulting services related to developing the company and creating a separate public entity.

The current structure of the company is beneficial from a shareholder perspective. So far management has ensured that cash flow is sufficient to fund future investments while maintaining the independence of the subsidiary companies.

Financials

M&A West was very aggressive in Q1/00 in investing cash. As indicated in the balance sheet, cash decreased by $960,000 to $181, 425. This quarter, deferred revenue of over one million dollars will be booked which will offset the decrease in cash and will maintain M&A West?s ability to finance future endeavors. The company is in a solid financial position with no debt and ample cash and marketable securities to finance future investments.

Balance Sheet Unaudited Audited

8/31/99
5/31/99

Assets

Current Assets

Cash and Equiv.
$181,425
$1,141,813

Accounts Receivable

10,000

Marketable Securities

(held for trading)
4,690,225
573,976

Investments-at equity
1,097,088
426,558

Investments-at cost
610,890
327,000

Employee advances
8,732
8,000

Prepaid taxes
126,000

Total Current Assets
6,714,360
2,487,347

Other Assets

Deferred Income Taxes
12,110
12,110

PPE, net
23,999
20,584

Homesmart, restricted shares
87,825

$6,838,294
$2,520,041

Liabilities and Stockholders Equity

Current Liabilities

Accounts Payable
$23,727
$114,127

Income Taxes Payable
1,709,000
168,000

Payroll taxes
32,464
25,912

Deferred Revenue
1,078,844
0

Total Current Liab.
2,844,035
308,039

Stockholders Equity

Common Stock, 11000000 shares issued and outstanding
2,020,538
2,020,538

Retained Earnings
1,973,721
191,464

Total Equity
3,994,259
2,212,002

Total Liability and Equity
$6,838,294
$2,520,041

Balance Sheet Comments.

Investments where the company has significant influence are accounted for at market value.
Investments in non-trading equity securities are accounted for at cost.

Earnings Model

Earnings Model*

Fiscal Year (March)
Q1/00(A)
Q2/00(E)
Q3/00(E)
Q4/00(E)
Year (E)

Revenue
$3,458,202
$2,500,000
$2,000,000
$2,500,000
$10,458,202

S,G&A Expenses
518,180
300,000
325,000
35,0000
1,493,180

Income from Operations
$2,833,793
2,200,000
1,675,000
2,150,000
8,965,022

Other Income (Expenses)

Interest Income
542
0
0
0
542

Gains/Losses on Sale of Securities
173,292
0
0
0
173,292

Equity Gains/Losses in unconsolidated subs
-37,370
0
0
0
-37,370

Total Other Income
136,464
0
0
0
136,464

Net Income before taxes
$2,970,257
2,200,000
1,675,000
2,150,000
8,995,257

Income tax expense
-1,188,000
-880,000
-670,000
-860,000
-3,598,000

Net Income
$1,782,257
$1,320,000
$1,005,000
$1,290,000
$5,397,257

EPS
$0.16
$0.12
$0.09
$0.12
$0.49

Average Shares Outstanding
11,000,000
11,000,000
11,000,000
11,000,000
11,000,000

*Effects of the Digital Bridge spin-off are not included in this model. They will be revised at a later date as more information becomes available

This earnings model makes no forecast for future trading gains or losses. The ability to book trading gains in subsequent quarters would have a favorable impact on the valuation of M&A West.

Valuation

Revenue is forecasted to be $10.5 million for fiscal year 2000. The current market capitalization is approximately $55 million. This would give a market cap to forecasted revenue multiple of between 5 and 6X, a very low multiple for a profitable company engaged in Internet venture capital. Based on the revenue projections for 2000 and a conservative, yet realistic, multiple of 15-18X, which is in line with other companies in this sector, we believe that this company could be trading at $14-$16.00 in the next 12 months.

Investment Risks

While we believe that M&A West has invested in some very interesting companies, the portfolio of companies is young and does not have a long earnings record. Marketable securities, being the largest asset, are subject to a fairly high degree of variability due to the requirements of being reported at the lower of cost or market value. Investor sentiment changes quickly, and as such, these companies are subject to a degree of variability.

Darren E. Robinson, CFA

Mr. Robinson is a member of the Toronto Society of Financial Analysts and the Association for Investment Management and Research. He has over 6 years of Financial Services experience including working as a mutual funds analyst at Dundee Mutual Funds. Along with being a CFA charterholder, he has completed course work with the Canadian Securities Institute and holds a Bachelor of Arts degree in Mathematics from York University.

M & A West, Inc. 583 San Mateo Avenue, San Bruno, CA 94066 Phone (650) 588-2678 Fax (650) 827-9508 Contact Mr. Scott Kelly e-mail scott@mawest.com web site web.archive.org

Investrend Research John M. Dutton, President, 801 S. Figueroa, Suite 1100, Los Angeles, CA 90017 Phone (213) 929-2618 Fax (213) 623-4590 e-mail jmdutton@mediaone.com web site web.archive.org.

Public Analysis & Review (PAR) is a program of the Investors Research Institute, Inc. (IRI), a non-profit membership organization for individual investors and others advocating higher standards of "accessibility", "scrutiny" and "disclosure" for public companies. Continuing quarterly coverage by an independent analyst is a requirement to meet the "scrutiny" of the elite "Seal of Best Practices in Investor Relations" standard described on the organization?s website at investorsresearch.org. If a company has no independent analyst following, this requirement may be satisfied by enrollment in PAR or any similar program. Anyone, including a company, may enroll a company for coverage. PAR reports are performed on behalf of the members of the Institute, and are not a service to any company. PAR analysts are responsible only to the public, and are qualified and assigned solely by the Institute, separate from the fiduciary entity, which is IRI, Inc. (IRIK), a public company in registration and financial administrator for the non-profit Institute. PAR analysts are paid in advance to eliminate pecuniary interests and insure independence. PAR enrollment fees are $17,500 per annum.

Information, opinions, or recommendations, contained in this report are submitted solely for advisory and information purposes. The information used and statements of fact made have been obtained from sources considered reliable but neither guarantee nor representation is made as to the completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This report or study is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed.

©Copyright, 1999, by IR/j: Investors Research Journal, Investrend Research, div IRI, Inc.

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