Thanks for the explanation CHUMP!!, and here I thought it did not go through because of the best laid plans of mice and men soon go astry. What was I thinking?
CHEERS CHUMP!!
Cautionary Tale Of A Little Stock And Big Losses
Small eSat Inc. appears to be the familiar tale of Internet stocks, which rocketed in price on favorable news only to come back to earth after some of that news' accuracy was questioned. The tale of eSat underlies how hard it can be for investors to track some companies' financial prospects, and to discern the financial backing of some fledgling Internet firms. At the heart of the eSat story is a convicted drug dealer and con man named Regis Possino, whose name has shown up in numerous court regulatory filings and other documents as a consultant and shareholder in numerous companies. Recently, the SEC has been inquiring into Mr. Possino's current activities, and Idaho securities regulators have obtained a judgment against a company that they say was owned by Mr. Possino. In that suit, regulators said Mr. Possino's company and one of its salesmen misled investors in the selling of two issues that produced over $150,000 in losses for the purchasers. Among other things, the salesmen failed to disclose that Mr. Possino owned the company and that one of the stocks was already under a SEC manipulation lawsuit. ESat signed a deal in Sept. 1998 with one of Mr. Possino's firms, and later corporate entities bought five million shares of the company. By January 1999, the company's shares had skyrocketed on the OTC Bulletin Board, aided by news the company had a close association with Lucent Technologies Inc. When several months later this was proven false, investors were angry, and the stock slid. Mr. Possino was nowhere shown to be associated with the company.
For additional information refer to The Wall Street Journal or go to wsj.com. |
