Perhaps the "quiet man" could decipher this PM to me:"Jack Zahran and simarx @ 1-800-TRAVEL.com
Jack Zahran of ZA Inc. (http://www.zahran.com) of new york is a known internet web
specialist. Because of the special facilities offered 1-800-Travel Systems (NASDAQ:
IFLY, IFLYW) decided to contract him as an independent specialist to create their
online reservation systems. As IFLY is not that what we call cash-rich, they agreed to
pay at least a part of the consultancy fees in IFLY stock, which was done in the form
of a series of stock options. Their intrinsic value increases notably with a rising IFLY
price.
There is a connection to a poster named simarx which is said to have worked with
Jack Zahran on IFLY. How did it come to that:
simarx is on SI under:
Member 4716374
We note that simarx is a SI member since Jun 21, 1998. Around that time, Jack
Zahran and IFLY closed their employment contract which was renegotiated to grant
options to Zahran according to the S-8 registration statement.
What did simarx mention here and there: IFLY all over the world, Cumetrix,
Novacare, aware, westell, ... all stocks of a certain quality: low stock price, and
quantity: enough shares to buy for everyone including Forrest Gump.
It was reported that Jack Zahran as well as simarx worked together on a stock
newsletter which appears to be:
investoralley.com
A recommendation and diclosure on the "investoralley" made us thinking WHO
actually simarx is:
Per the Thursday, December 3, 1998 - 12:03 pm:
"We are finally starting coverage of this Wall Street sweetheart. 800 Travel
Systems seems to be on-time with the roll-out of their Internet Commerce
application. Many E-mails from investors indicate that some have already tested
and seen the system. (This includes one of our own Due Diligence committee
members SIMARX.) Simarx tells us that he plans to have a position of 50,000
shares by the end of the year (hows that for a disclaimer, we would not have
listed the stock otherwise.).
We note that, if and when he has 50.000 shares by the year-end, not disclosed from
where the shares are acquied, it appears to be that simarx is nobody else than Zahran's
himself.
There aren't many other insiders who are in the position to have 50.000 shares by
year-end, the date when the release of the IFLY site was pre-announced and
appeared as IFLY supporters only back in June 1998, the time Jack Zahran got
involved.
The conclusion about IFLY is: Our take is - that simarx used the SI threads
to tout IFLY at the same time he - regardless whether he wasn't Zahran
himself - allegedly hold, held or has rights to acquire 50k shares. Therefore
and in conjunction with an eventual IFLYW redemption, IFLY stock should be
avoided.
The very first stock simarx appears to have touted has been - IFLY.
What is more interesting is the concentration on - how quaint - TAVA. Jack Zahran
supports TAVA by providing a web directory at his website for a TAVA report that
was put together by "C.K. Houston", a TAVA investor."
Who appears to be that guy, again:
Member 3363203
Note that also simarx (on investoralley) himself likes TAVA earlier, namely end of July:
As far as TAVA goes, it has a great story that appears to be coming true.
However, it is speculative as the market still has not adopted it. It looks like we
are now awaiting earnings. With positive earnings will come more attention. So
right now it has a great upside if they come through on the earnings. We'll keep
watching it before making a general recommendation. The price currently does
look attractive.
We acted - and besides our IFLY short, we took a sizable TAVA short position and
we would recommend a closer look in what simarx/ZA/C.K. Houston have to do with
TAVA."
Lucy! you got some 'splainin to do! There are also allegations of extortion for trading profits made in IFLY, which for one would hope most would understand, the SI member who PM'd me did not want names released on. Draw your own conclusions, but it seems to me that the Tres Amigos have some serious explaining to do. Perhaps they will form a Nixonian Plumbers Union. Me smells a big coverup by some of these boyz. And this post ain't gonna get covered up by a bunch of posts by the Three Stooges and pals. |
