ECNC Pacific Equity Investigations Report Part 1
Pacific Equity Investigations, Initiates immediate coverage on eConnect ,Inc. OTC BB: ECNC )with a strong sell recommendation. PEI places a 3 month Price target of 25 cents.
A.) In Early and Mid 1999, Tom Hughes, CEO of ECNC, issued a press release that stated, any shareholder that could prove they held the stock , would be given a 5% allocation of free shares. This in our opinion is an extra incentive or " bribe " that is meant to induce certain " special " shareholders from selling their shares and it's also intended to create an artificial demand for the stock through the selective offer. This creates a deamnd for ECNC shares that normally wouldn't exist without the 5% incentive.
B.) ECNC announced an agreement with Pilot Island Publishing, a subsidiary of ( OTC BB : IDIG ) , that states they have " have structured a licensing arrangement with PalmPilot to enable first-ever wireless hand-held internet terminal transactions." In an interview with a spokesperson of Palm Pilot, we were told that no such agreement exists.
eConnect is merely using the free source code that Palm Pilot offers on the internet for product development, which is available to anyone for free.
C.) eConnect, Inc. has maintained a most unusual presence on the internet message boards. Paid Employees and consultants, have been posting , without disclosing they are insiders, messages on Internet message boards, in direct violation of SEC rules and regulations. The following aliases have been uncovered as belonging to Insiders at eConnect;
On Silicon Investor:
ALIASES: jmhollen, Manny Vavolliza, ocmayor, Marc Richter
On Raging Bull:
ALIASES: jmhollen, WallStRange, ocmayor, rick824
These Posters have incited shareholders to hold and even buy stock at these current inflated levels without having any basis for such a reccomendation, they have actively threatened anyone who is critical of their market valuation, or their tactics.
D.)After Reviewing the message Boards and reading through the various Press Releases issued by the Company, we discovered that shareholders claimed that they were the beneficiary of Free Shares From Mr. Tom Hughes , CEO of ECNC, one specific poster , jorgenzak claimed to have received 10,000 shares from Mr. Hughes, for free and as a gift. The tone of Mr. Jorgenzak's postings became supportive after receiving these shares. In a telephone interview, with The chief Information Officer, Manny Vavollizza, Mr. Vavolizza stated that The company has never given nor paid individuals on the Internet, and that " jorgenzak" was in fact a "paid Consultant" and "he had done research and work and stuff for Tom". However, The following post on Silicon Investor,
Message 13128916 , Jorgenzak denies ever doing any work for these shares.
E.) eConnect has engaged in a scheme that involves what appears to be compensating strangers on the Internet to remain friendly and supportive of ECNC shares and to support the stock price by making frequent positive postings.
F.) eConnect has also issued Non Public Information using the message Boards and not using National Wire services , in an attempt to counter Stock fluctuations.
Exhibit : ( Message 13151776 ), we have Mark Richter, an agent of eConnect , making a disclosure on Silicon Investor before it ever was released through a national news dissemination wire, in violation of Securities Laws and as mandated By the Securities and Exchange Commission )
Pacific Equity Investigations continues its investigation, and maintains a strong sell and or short rating on shares of eConnect , Inc.
Pacific Equity Investigations may or may not maintain a position that is consistent with the above recommendation. The information has been derived from sources it believes to be reliable and truthful, however no warranties or guarantees are offered nor implied .
pacificequity@msn.com |
