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   Strategies & Market TrendsAnthony @ Equity Investigations, Dear Anthony,


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To: Jeffrey S. Mitchell who wrote (88812)12/17/2004 4:18:54 PM
From: Janice Shell
   of 122062
 
lol, yes... They really are beyond dumb.

Another Board Basher's Masquerade Lifted...

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To: StockDung who wrote (88813)12/17/2004 4:20:28 PM
From: Janice Shell
   of 122062
 
Make that Gayle Essary...

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To: Pluvia who wrote (88830)12/17/2004 5:00:10 PM
From: hedgefundman
   of 122062
 
Guess I gotcha!!! No wonder AP kicked your butt!! Since you can't answer, I'll repeat for ya. ROFLMAO

although the term "yah don't know yer ass from a hole in the ground" comes to mind.

I'll defer to you there. Ain't you that shrub trimmer? I guess you know all about the holes in the ground.

Your questions are meaningless but of course you know that.

You can run but ya can't hide by claiming he was a liar. It's easy to call Tony a liar now that he's not here to defend himself. Pretty easy to get outta trouble with the "he's a liar" "t'aint me" defense.

I'm not saying anyone is going to be indicted. I am saying that criminal cases often leave lots of trails and one of those may lead to a garden you hoe. (comma?)

Lies on the site - weren't you one of those who followed those lies and went after longs with taunts? Now, shoe on the other foot, you use the "t'aint me, I knew they was lies" response.

If I understand u correct, it goes sorta like this.

Buddy X steals a diamond from the jeweler. Ole pluvia being a nice guy buys it for $5.00 even tho he seen Buddy X running from the jeweler. "hmmmm, maybe he's just a jogging."

Turns out the diamond is cubic zirconium. So did ole pluvia receive stolen goods? Can he use the ole "i din't see no crim and no crime defense?" And he thought he was buyin a diamond for his signifeecant udder.

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To: hedgefundman who wrote (88834)12/17/2004 5:27:37 PM
From: Pluvia
   of 122062
 
hmm... you remind me of a train wreck on video loop.

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To: Pluvia who wrote (88835)12/17/2004 5:30:37 PM
From: hedgefundman
   of 122062
 
and you remind me of a fat hedge trimmer who talks tough about someone who isn't here to defend himself. you also remind me of someone who got caught with his hand in the cookie jar and says "t'aint me."

ROFLMAO

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To: Janice Shell who wrote (88833)12/17/2004 6:40:55 PM
From: StockDung
   of 122062
 
INVESTREND/DONALDSONGATE:"Dutton set out on when he founded Investrend, another pay-for-play research organization from which he parted to start the new company, taking many of the analysts with him."

J.M. Dutton & Associates
An Independent and Pure Research Shop
by Ben Mattlin

In April 2002, John M. Dutton, president and director of research at the El Dorado Hills, California-based J.M. Dutton & Associates, was wooing chief executive officers of American Stock Exchange-listed companies at their semi-annual convention. The CEOs weren't used to receiving attention from research directors. Wall Street, after all, tends to favor the larger and better known companies of the New York Stock Exchange and Nasdaq Market, which are seen as more likely to generate rapid sales commissions and lucrative investment-banking deals. But, Dutton told the assembled CEOs, all that was about to change. "They should get to know us, I said, because they might want to do business with us," he later recounts.

Dutton, who has worked on both the buy and sell sides on and off Wall Street since 1966, launched Dutton & Associates last September, before the terrorist attacks, to seek out under-covered stocks wherever they might be hiding. With 14 analysts spread across the country tracking 30 small- to micro-capitalization companies ranging from $10 million to $500 million, the firm has no investment-banking or securities-trading operations. It is a research shop, not a brokerage.

Headquartered a half-hour's drive east of Sacramento, Dutton & Assoc. stresses nothing but pure, old-fashioned independent research unadulterated by corporate-finance and trading pressures. "That's the way I was taught to do it," says the distinguished, thoughtful Dutton, a Brown University graduate with an M.B.A. from the University of Pennsylvania's Wharton School.

Indeed, in an era of increasing scrutiny over sell-side analysts for alleged conflicts of interest, Dutton's back-to-basics philosophy sounds refreshingly honorable and extraordinarily well timed. What's more, Dutton's team of seasoned analysts comes armed with decades of professional experience, chartered-financial-analyst certifications, and active memberships in the Association for Investment Management and Research, an independent organization dedicated to maintaining a high standard of business ethics. The firm may not be the only dedicated-research outfit, but it has the most mature analyst roster, with an average age that's roughly double that of many Wall Street hotshots today -- another point of pride. "There's real value in maturity," observes Dutton, 59. "Young people assume when the market's hot it's going to stay that way, but I've been around long enough to see every cycle come to an end." Specialty-foods and gaming analyst Gerald F. LaKarnafeaux, himself 65 years old, adds: "We've all been around the block a few times. We are not going to be misled very easily."

But the other point about maturity has to do with a sense of responsibility and ethics. When the Securities and Exchange Commission recently proposed new regulations for analyst conduct --such as barring them from owning shares of companies they cover -- Dutton's squad was already a step ahead. They've never been allowed to hold the stocks they follow.

Of course, whatever their degree of moral integrity, the firm's got to make money somehow. This is another way Dutton & Assoc. differentiates itself from its three or four pure-research competitors: its revenue model. "Our revenue model is the best for avoiding conflicts of interest," asserts Richard Hefter, Los Angeles-based vice president of sales and marketing.

Regional investment banks and brokers with insufficient or inadequate research capabilities outsource to Dutton & Assoc. But other, often-misunderstood revenue sources are under-followed companies willing to pay for coverage. Hefter and Dutton actively solicit such business, which is largely why Dutton attended that April AMEX company CEOs meeting. From the outset, it's made clear to corporate candidates that they are not buying recommendations; they're buying coverage. They pay for one year in advance, and let the chips fall where they may. Dutton compares it to credit ratings from Moody's Investors Service and the like, which are based on independent, objective research. "We're not an investor-relations firm," Hefter stresses. "Companies know that when they hire us, and they understand that our only value to them lies in our credibility."

Do all companies without coverage deserve coverage? Perhaps there's a good reason they've been overlooked. But Dutton & Assoc.'s Robert Davis, who studies coverage statistics, asserts that stock coverage is directly proportional to stock size. All other things being equal, the smaller the company the less likely it is to draw an analyst's attention. And the problem is growing worse. Today, only 41% of companies with market caps between $50 million and $75 million receive sell-side earnings forecasts, for instance, whereas last August more than half the companies in that bracket did.

Dutton estimates some 5,000 small-cap companies in the United States are going without adequate research coverage. "They trade more cheaply than their listed counterparts even when they have better margins, better growth rates, and better management," he observes. In truth, the drop in available research on small-cap stocks is even more surprising when you consider the relative performance of Standard & Poor's Small Cap 600 to its big-brother benchmark, the S&P 500. Last year, the smaller companies advanced 6.5% while the broad index plunged nearly 12%.

Yet Dutton's firm isn't open to providing research on all comers. They must be "well run and high quality" to pass his screens. Over-the-counter Bulletin Board stocks can and often do pass, but Dutton draws the line at penny stocks listed on the "pink sheets."

An accepted company is then assigned to an analyst, who earns a fee up front to track the stock for one year, in a kind of freelance arrangement. Strictly speaking, the analysts are independent contractors. Their compensation is based on the number of companies they follow (capped at eight per year, to avoid burnout), the number of update notes they write beyond the initial and quarterly reports and the accuracy of their forecasts. Because all fees are paid up front, analysts are free to conduct their research and formulate their opinions without concern about ruffling management's feathers. They're not even afraid to issue sell ratings when appropriate. "My opinions are based on my research, not on how we can get a buck out of trading the stock or doing a deal with the company," insists analyst Richard W. West, who monitors financing and technology companies from a base in New York. "We're not pushed to come out with a certain rating."

In another surprising aspect of the revenue model, research reports are distributed as widely as possible -- simultaneously to Multex.com, FirstCall.com, the company's own free website (www.jmdutton.com), and an ever-growing mailing list. "We don't charge for our research," says Hefter, who defines an important part of his job as "making sure the product has the widest possible readership."

That's true to the mission Dutton set out on when he founded Investrend, another pay-for-play research organization from which he parted to start the new company, taking many of the analysts with him. "The more sunlight that shines on every step of the process, the better for everybody," Dutton holds. An avid airplane pilot and sailor in his off-hours, he knows a lot about sunlight. And about independence.

If you can talk about loyalty in a company that's not even a year old, Dutton's analysts appear loyal to the man and the mission. Sherry Grisewood, an analyst based in New Jersey who covers "healthcare-enabling technologies" and doubles as assistant director of research, has worked with him at two different firms -- a distinction shared by many of her colleagues. She boasts 25 years on the sell side, monitoring a variety of special situations and small-cap stocks both independently and for such firms as E.F. Hutton Co. (now part of Lehman Brothers) and Donaldson, Lufkin & Jenrette Securities Corp. (now part of Credit Suisse First Boston). Grisewood is currently focusing on new technologies that enable less invasive therapeutic solutions.

Her Seattle-based colleague Les Childress leverages as many years' experience in energy and special-situations research. Turnaround opportunities and the misunderstood are among his favorite finds, but he also keeps sights on community banks and, increasingly, Canadian stocks. Famously skeptical of management, he puts more faith in strategic execution and a sound balance sheet.

Such no-nonsense values pervade the analysts' reports, which are surprisingly well written and to-the-point. Though largely aimed at individual investors, they are fashioned with an eye toward "institutional quality." Dutton himself wields an editor's red pencil over every word. "If you can't communicate your views clearly," he muses, "you might as well be a portfolio manager!"

The research director is actively recruiting to expand the department into new sectors, and he anticipates a coverage universe of 75 companies by year-end, triple the current size. A London office is also underway, followed shortly by one in Asia. The heady excitement is palpable. Observes vice president Hefter, "You can feel the analysts' delight at being able to do research without strings attached." *

(continue)

=====================================

."BusinessWeek magazine last year reported that the company paid a promoter for ostensibly independent stock research while Donaldson was on the board"
====================================================
Regulators Probe Firm Where SEC Chief Was Director

By Carrie Johnson
Washington Post Staff Writer
Thursday, July 1, 2004; Page E01

The Securities and Exchange Commission is probing the books of EasyLink Services Corp., a New Jersey firm where SEC Chairman William H. Donaldson served on the board until shortly before he became the agency's chairman, according to sources familiar with the investigation.

The status of the investigation, which involves how the company recorded its revenue, could not be determined yesterday.

Donaldson declined to comment yesterday, as did SEC spokesman Matthew C. Well.

Donaldson, 73, took the helm of the SEC last year after financial scandals and political missteps had damaged the agency's reputation. He has been trying in recent months to push through a slate of controversial proposals to clean up the mutual fund industry, regulate the risky investment pools known as hedge funds and give dissatisfied shareholders more power to nominate corporate board members.

The investigation into EasyLink, which was reported by Dow Jones yesterday, echoes a similar controversy in the SEC's recent history.

Donaldson's predecessor as SEC chairman, Harvey L. Pitt, resigned on election night in November 2002 in a firestorm over his choice of former CIA director William H. Webster to head the new accounting industry oversight board.

It was later disclosed that Webster had headed the audit committee at U.S. Technologies Inc., a D.C. company whose accounting practices were under SEC scrutiny and whose chief executive would later be convicted of fraud. Pitt allegedly failed to tell his fellow commissioners about Webster's role at U.S. Technologies before they voted to approve him to head the accounting oversight board.

Donaldson, who was on the EasyLink board from 1998 to late 2002 and served on the audit and compensation committees, has recused himself from voting on the EasyLink enforcement action, the sources said. One of the sources said board members, even those on audit committees, don't necessarily delve into methods of revenue recognition.

EasyLink converts paper documents into e-mail messages. The company, then known as Mail.com, went public during the height of the dot-com boom in 1999 and its shares rose to a high, adjusted for splits, of $271 that year. Its shares now trade for $1.63.

Its founder and chairman, Gerald Gorman, worked for a dozen years at the Wall Street investment bank Donaldson, Lufkin & Jenrette, which Donaldson co-founded. Gorman did not return phone calls yesterday.

While on the board, Donaldson voted to forgive a $200,000 loan to the company's chief executive at a time the company was struggling financially, an issue that critics raised before his 2003 confirmation hearings for the role of SEC chairman. BusinessWeek magazine last year reported that the company paid a promoter for ostensibly independent stock research while Donaldson was on the board.

SEC enforcement chief Stephen M. Cutler did not return calls yesterday evening.

© 2004 The Washington Post Company
=========================================

A Thorny Question for Donaldson
DECEMBER 31, 2002
NEWS ANALYSIS
Bush's SEC chief nominee was on EasyLink's board when the Internet outfit paid $25,000 for a report that called it a "speculative buy"

The brokerage firm that William H. Donaldson co-founded, Donaldson, Lufkin & Jenrette, was proud to call itself "The House That Research Built." But research may prove to be a thorny issue for Donaldson, who faces Senate confirmation hearings on whether he will succeed Harvey L. Pitt as chairman of the Securities & Exchange Commission. BusinessWeek has learned that an Internet company in which Donaldson was a director, EasyLink Services Corp. (EASY ), paid $25,000 to a California firm to produce ostensibly independent research that briefly boosted the high-tech company's share price.

And that poses a troubling question: Did Donaldson endorse the controversial practice, common among microcap companies, of paying for research? Donaldson's close ties to Wall Street and his controversial tenure as chairman of Aetna Inc. (AET ) have made him a subject of widespread criticism by investor advocates. Any connection between Donaldson and the decision by Edison (N.J.)-based EasyLink to commission the research -- which mimics Street research so closely that it appears to violate industry guidelines -- could fuel criticism that he is not sympathetic to investor concerns.

PROMOTION GIMMICK. Donaldson, who left the EasyLink board on Nov. 12, declined comment on whether he or the board had approved the hiring of J.M. Dutton & Associates to produce the reports. Through a staffer, he referred questions to Gerald Gorman, EasyLink's chairman and a former DLJ investment banker, who said he didn't recall discussing Dutton with Donaldson, or asking for board approval. He declined to say if the board ever discussed the general issue, saying, "Those are not matters we discuss publicly."

Paid research, though legal, is generally viewed by regulators and market pros as a stock promotion gimmick rather than genuine research. Says Joseph P. Borg, the Alabama Securities Commissioner and an authority on microcap issues: "When we look at these things, more than half are usually, you know, crap."

Louis M. Thompson Jr., president of the National Investor Relations Institute, says the group banned paid research entirely until January, 2002, because of the potential for abuse. NIRI then enacted stringent, though voluntary, guidelines requiring that reports not resemble ordinary analyst reports and mandating explicit payment disclosure.

"UNDERVALUED"? Market reaction to the first Internet-distributed Dutton report, on Sept. 3, was ecstatic. Share prices jumped 37%. Contrary to NIRI guidelines, the report gave EasyLink a "speculative buy rating." It noted Donaldson's presence on the "strong board of directors" and said the company "appears to be undervalued."

The report says "the cost of enrollment in the Dutton & Associates one-year continuing research program is US $25,000" -- but does not explicitly say that EasyLink paid Dutton. The firm's president, John M. Dutton, confirmed the payment and said there was no understanding that Dutton would provide favorable reports.

The SEC has set no rules specifically governing paid research and has announced no plans to look at the issue. But that could change if more distressed companies decide to resort to this controversial form of stock promotion. Gorman is right. What happened at EasyLink board meetings is a private issue. But the Senate may not take "no comment" for an answer.

By Gary Weiss in New York

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story.

To subscribe online to BusinessWeek magazine, please click here.

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To: Janice Shell who wrote (88833)12/17/2004 6:43:23 PM
From: StockDung
   of 122062
 
A Thorny Question for Gayle Essary lol

--------------------------------------------

A Thorny Question for Donaldson
DECEMBER 31, 2002
NEWS ANALYSIS

Bush's SEC chief nominee was on EasyLink's board when the Internet outfit paid $25,000 for a report that called it a "speculative buy"

The brokerage firm that William H. Donaldson co-founded, Donaldson, Lufkin & Jenrette, was proud to call itself "The House That Research Built." But research may prove to be a thorny issue for Donaldson, who faces Senate confirmation hearings on whether he will succeed Harvey L. Pitt as chairman of the Securities & Exchange Commission. BusinessWeek has learned that an Internet company in which Donaldson was a director, EasyLink Services Corp. (EASY ), paid $25,000 to a California firm to produce ostensibly independent research that briefly boosted the high-tech company's share price.

And that poses a troubling question: Did Donaldson endorse the controversial practice, common among microcap companies, of paying for research? Donaldson's close ties to Wall Street and his controversial tenure as chairman of Aetna Inc. (AET ) have made him a subject of widespread criticism by investor advocates. Any connection between Donaldson and the decision by Edison (N.J.)-based EasyLink to commission the research -- which mimics Street research so closely that it appears to violate industry guidelines -- could fuel criticism that he is not sympathetic to investor concerns.

PROMOTION GIMMICK. Donaldson, who left the EasyLink board on Nov. 12, declined comment on whether he or the board had approved the hiring of J.M. Dutton & Associates to produce the reports. Through a staffer, he referred questions to Gerald Gorman, EasyLink's chairman and a former DLJ investment banker, who said he didn't recall discussing Dutton with Donaldson, or asking for board approval. He declined to say if the board ever discussed the general issue, saying, "Those are not matters we discuss publicly."

Paid research, though legal, is generally viewed by regulators and market pros as a stock promotion gimmick rather than genuine research. Says Joseph P. Borg, the Alabama Securities Commissioner and an authority on microcap issues: "When we look at these things, more than half are usually, you know, crap."

Louis M. Thompson Jr., president of the National Investor Relations Institute, says the group banned paid research entirely until January, 2002, because of the potential for abuse. NIRI then enacted stringent, though voluntary, guidelines requiring that reports not resemble ordinary analyst reports and mandating explicit payment disclosure.

"UNDERVALUED"? Market reaction to the first Internet-distributed Dutton report, on Sept. 3, was ecstatic. Share prices jumped 37%. Contrary to NIRI guidelines, the report gave EasyLink a "speculative buy rating." It noted Donaldson's presence on the "strong board of directors" and said the company "appears to be undervalued."

The report says "the cost of enrollment in the Dutton & Associates one-year continuing research program is US $25,000" -- but does not explicitly say that EasyLink paid Dutton. The firm's president, John M. Dutton, confirmed the payment and said there was no understanding that Dutton would provide favorable reports.

The SEC has set no rules specifically governing paid research and has announced no plans to look at the issue. But that could change if more distressed companies decide to resort to this controversial form of stock promotion. Gorman is right. What happened at EasyLink board meetings is a private issue. But the Senate may not take "no comment" for an answer.

By Gary Weiss in New York

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story.

To subscribe online to BusinessWeek magazine, please click here.

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To: Janice Shell who wrote (88833)12/17/2004 6:43:27 PM
From: StockDung
   of 122062
 
A Thorny Question for Gayle Essary lol

--------------------------------------------

A Thorny Question for Donaldson
DECEMBER 31, 2002
NEWS ANALYSIS

Bush's SEC chief nominee was on EasyLink's board when the Internet outfit paid $25,000 for a report that called it a "speculative buy"

The brokerage firm that William H. Donaldson co-founded, Donaldson, Lufkin & Jenrette, was proud to call itself "The House That Research Built." But research may prove to be a thorny issue for Donaldson, who faces Senate confirmation hearings on whether he will succeed Harvey L. Pitt as chairman of the Securities & Exchange Commission. BusinessWeek has learned that an Internet company in which Donaldson was a director, EasyLink Services Corp. (EASY ), paid $25,000 to a California firm to produce ostensibly independent research that briefly boosted the high-tech company's share price.

And that poses a troubling question: Did Donaldson endorse the controversial practice, common among microcap companies, of paying for research? Donaldson's close ties to Wall Street and his controversial tenure as chairman of Aetna Inc. (AET ) have made him a subject of widespread criticism by investor advocates. Any connection between Donaldson and the decision by Edison (N.J.)-based EasyLink to commission the research -- which mimics Street research so closely that it appears to violate industry guidelines -- could fuel criticism that he is not sympathetic to investor concerns.

PROMOTION GIMMICK. Donaldson, who left the EasyLink board on Nov. 12, declined comment on whether he or the board had approved the hiring of J.M. Dutton & Associates to produce the reports. Through a staffer, he referred questions to Gerald Gorman, EasyLink's chairman and a former DLJ investment banker, who said he didn't recall discussing Dutton with Donaldson, or asking for board approval. He declined to say if the board ever discussed the general issue, saying, "Those are not matters we discuss publicly."

Paid research, though legal, is generally viewed by regulators and market pros as a stock promotion gimmick rather than genuine research. Says Joseph P. Borg, the Alabama Securities Commissioner and an authority on microcap issues: "When we look at these things, more than half are usually, you know, crap."

Louis M. Thompson Jr., president of the National Investor Relations Institute, says the group banned paid research entirely until January, 2002, because of the potential for abuse. NIRI then enacted stringent, though voluntary, guidelines requiring that reports not resemble ordinary analyst reports and mandating explicit payment disclosure.

"UNDERVALUED"? Market reaction to the first Internet-distributed Dutton report, on Sept. 3, was ecstatic. Share prices jumped 37%. Contrary to NIRI guidelines, the report gave EasyLink a "speculative buy rating." It noted Donaldson's presence on the "strong board of directors" and said the company "appears to be undervalued."

The report says "the cost of enrollment in the Dutton & Associates one-year continuing research program is US $25,000" -- but does not explicitly say that EasyLink paid Dutton. The firm's president, John M. Dutton, confirmed the payment and said there was no understanding that Dutton would provide favorable reports.

The SEC has set no rules specifically governing paid research and has announced no plans to look at the issue. But that could change if more distressed companies decide to resort to this controversial form of stock promotion. Gorman is right. What happened at EasyLink board meetings is a private issue. But the Senate may not take "no comment" for an answer.

By Gary Weiss in New York

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story.

To subscribe online to BusinessWeek magazine, please click here.

Share RecommendKeepReplyMark as Last Read


To: Jeffrey S. Mitchell who wrote (88479)12/18/2004 12:05:43 AM
From: Jeffrey S. Mitchell
   of 122062
 
2004 BCSECCOM 716

Hearing Adjournment
Amr I. Elgindy (also known as Anthony Elgindy, Tony Elgindy and Anthony Pacific), Mary Faith Elgindy, Pacific Equity Investigations and
Derrick W. Cleveland

Section 161 of the Securities Act, RSBC 1996, c. 418

The British Columbia Securities Commission will hold a hearing to determine whether it is in the public interest to make orders under section 161 of the Act against the above respondents.

The matter has been adjourned, by consent, to March 18, 2005 at 10 am at the British Columbia Securities Commission, 12 floor, 701 West Georgia Street, Vancouver, British Columbia, when the commission will set a date for the hearing.

Temporary orders, outlined in the notice of hearing dated May 24, 2002 and as varied from time to time, remain in effect until the hearing is held and a decision is rendered.

December 13, 2004

Robin E. Ford
Commissioner

bcsc.bc.ca:8080/comdoc.nsf/allbyunid/b73ec82556a65e8988256f6a0069cca0?opendocument

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To: Janice Shell who wrote (88827)12/18/2004 1:41:51 AM
From: Buckey
   of 122062
 
JS - I have done so Much DD on MLON I am tired. Just trying to find one iota of truth - conclusion = possibly the largest scam ever - tired now

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