About FWEB....
WHAT'S NEW
Stock Detective Returns
By Carl W. Surran
Friday, July 07, 2000 12:16:00 PM
We're back.
And we're ready, willing and able to take on the schemes and scams that lurk in the little-known, little-examined dark, grimy
netherworld of investing.
Every investor dreams of owning shares of the next Microsoft, Cisco or AOL. Unscrupulous stock promoters and brokers
prey on this desire with pie-in-the-sky pitches for low-priced stocks boasting the latest "revolutionary" product or technology.
Too often, there's neither product nor technology -and no revenues and no future.
In fact, a company's insiders may seek only to pump up the stock price and dump the shares at a big profit -for them.
Promoters shrewdly use Internet, e-mail or direct mail to target unknowing investors. This form of fraud and deceit is growing.
At FinancialWeb.com, we are proud of the track record Stock Detective"! has achieved in busting "pump-and-dump"
schemes and other market shenanigans. We are proud of the praise Stock Detective has earned over the years. Chicago
Sun-Times financial columnist Terry Savage, for example, lauded Stock Detective in her June 6, 1999 column, stating: "I'd
rank this web site as the greatest advance in investor protection since the SEC was created half a century ago."
The renewed Stock Detective will strive to live up to those expectations.
Yes, It Happened to Us
Recently, the federal government indicted a large shareholder of FinancialWeb.com Inc. and several paid stock promoters on
six counts of securities fraud. It is alleged that, from February 2000 to June 2000, the shareholder "enlisted others to
fraudulently inflate the price of FWEB stock, and to conceal his identity as the seller." So FinancialWeb also may be the
victim of a "pump and dump."
None of the executives of FinancialWeb.com or Stock Detective were named in the indictment.
Kevin Leininger, President and Chief Executive Officer of FinancialWeb, has stated: "The Company, its officers and directors
were not involved in any wrongdoing, nor were they alleged to have been involved, nor did they have any knowledge
whatsoever of the alleged scheme to manipulate the price of the Company's stock."
"FinancialWeb's new management team reaffirms its commitment to make FinancialWeb.com the preeminent provider of
global financial information and investment tools," Leininger said. "Management also remains committed to the re-launch of
Stock Detective as an important source of investor education, including potential stock promotions and other market
abuses."
Nevertheless, the charges shocked and amazed us. The incident reminded us of the continuing need for a resource to help
investors spot and avoid stock market shenanigans. With this episode fresh in our minds, we are excited to re-launch Stock
Detective -bigger and better than ever.
New Content, New Perspectives
Since its 1997 introduction, Stock Detective has followed fishy stock promotions and companies that make inflated claims.
We will continue to explore these sensitive subjects.
We have recruited Bob Davis, editor and founder of the acclaimed Napeague Letter, to analyze "Suspicious Stocks" of
small-cap companies that he believes are unlikely to live up to their projections. He uses solid fundamental analysis to
determine a company's financial strength and business potential.
The new Stock Detective is more diversified than ever, including more columns that emphasize investor education. In addition
to "Suspicious Stocks," you can look forward to:
Financial Plunders & Blunders, a weekly personal finance column specifically for equity investors, from the unique
perspective of CBS MarketWatch reporter Alan Feigenbaum
SEC Enforcement Highlights, a weekly update of recent SEC enforcement actions, by Washington, D.C. attorney and
former SEC official Mark McNair
Legal Scrutiny, a bi-weekly column on securities laws and major litigation issues concerning stock investors, also
authored by McNair
Penny Pinching, a bi-weekly report on penny-stock promoters and their latest activities, by hard-hitting, award-winning
journalist Lynn Duke
FinancialWeb employees and contributors are prohibited from trading in any stock mentioned within a Stock Detective
commentary, or any other original FinancialWeb.com column or article, for a period of two weeks prior to and four weeks after
publication. FinancialWeb and Stock Detective never accept payment of any kind from any company or individual in return for
promotion of securities.
Other regular features include:
Internet Directory of Penny Stock Promoters, a regularly updated list of web sites displaying small-cap company
"research" actually paid for by the companies themselves or their agents
Current Class Action Lawsuits, a regularly updated list of cases against publicly-traded companies that are open to
investor participation
InvestorTest, an interactive quiz featuring investor fraud and other topics of particular interest to Stock Detective
readers
"Fight Back!," a section of lists and commentaries offering investor assistance, from contact information about state
securities departments to a host of helpful reference articles
an enhanced Search function that allows investors to find focus companies from past Stock Detective columns
We're thrilled to be back, and we want to hear from you. We have an improved Feedback mechanism so you can easily send
us comments, suggestions or hot tips. Let us know what you think. |
