FWEB: Called SHORT at $15.50....... TODAY: $7.59 and FALLING...
This is what STINKY STOCK DEfECTIVE says of XNET, a profitable Internet ISP and Portal in the most rapidly expanding country in the world: "According to its initial filing with the SEC, the 10SB reveals a struggling company with very little cash or commitments.
Who is talking? FWEB, its parent Company had 1.27 Million losses in 1998 on only $159,500 in Revenue, an Assets/Liabilities balance of near ZERO and a $50 Millions Law Suit against it by ZSUN for Defamation: which is really the STRUGGLING Company??
HERE IS A PRIMER ON WHAT FWEB IS ALL ABOUT:
1) CEO Kevin Lichtman PUMPED and DUMPED a stock called DRIP:
Message 9291640
2) FWEB used to be AXXESS. Link on alleged manipulation of its stock:
businessweek.com
3) Former employee reports FWEB uses PIRATED SOFTWARE:
ragingbull.com
ragingbull.com
ragingbull.com
4) Story independently confirmed by other employees:
ragingbull.com
ragingbull.com
5) $50 Millions (meritorious, IMO) Law Suit filed by ZSUN against FWEB:
biz.yahoo.com
6) Financial position, from 10SB filed on Freeedgar:
+ Outstanding shares: approx. 7,653,000, plus various Warrants, Options, Rights, Convertible, Notes, you name it, etc...
+ Balance Sheet: about ZERO, as the $1 Million in Assets approximately balances $1 Million in Liabilities
+ Market Capitalization: $ 58 Millions, more or less...
+ 1998 Losses: $1,268,000, up from $373,000 in 1997, on $159,500 Revenue.
6) Conclusion:
$1 Million in Assets, $1 Million in Liabilities and $1.27 Million in Losses on $159,500 Revenue for 1998, does this look like the sound Financial situation of a successful Business about to go on NASDAQ?? IMHO, fair value, as I see it, could well be in the $1.50 to $3.00 range.
7) Disclaimer:
This is my personal opinion only and I have no position in FWEB. The foregoing represents a recap of my research on FWEB, intended for my sole use. Therefore, this is not posted for investment purposes. Some of the "facts" and "figures" may well be erroneous and thorough Due Diligence Must be carried out before forming an opinion.
Regards, F. Goelo + + +
PS: Flodyie, a proven Short Selling basher (SSB) once more seems to confirm his collaboration with Stinky Stock Defective for the preparation of XNET and ZSUN articles. The piece on XNET has all the appearances of a pay-back against a well known supporter of ZSUN and investor in XNET to the tune of 120,000 shares, yours Truly.... |
