Anthony, I'm not sure about this but it could be a scam, and one that more than one company is trying. This company's symbol is XDSL (OTC:BB). Supposedly they are able to provide DSL internet service and cable tv over existing telephone wires. A few things don't add up.
1) They have a paid tout pumping
2) They say they plan on starting offering what they have in Russia, why?
3) Apparently their CEO was ordered to pay over 1 million for a previous stock scam.
Here is a exerpt somebody left on the XDSL thread:
To: xbrent (55 )
From: jjs64
Wednesday, Feb 10 1999 7:41PM ET
Reply # of 62
XDSL may go higher in the short-term (and I pray it does so I can short more) but in
the end it will go to ZERO. Why dont you guys read a little bit about XDSL's CEO and
the company he used to work for...
MEMBER FIRM: GRAYSTONE NASH, INC.
(Expelled on 7/31/96)
BD NUMBER: 10635
NASD Member Firm: GRAYSTONE NASH, INC.
(Expelled on 7/31/96)
BD Number: 10635
2/09/99: 5/15/92 SEC PERMANENT INJUNCTION ORDER
THE FIRM WAS PERMANENTLY ENJOINED IN THE U.S. DISTRICT
COURT FOR THE DISTRICT OF NEW JERSEY, AS THE RESULT OF A
CIVIL COMPLAINT FILED BY THE SECURITIES AND EXCHANGE
COMMISSION. THE COMMISSION ENJOINED THE FIRM FROM
VIOLATING ANTIFRAUD, REGISTRATION AND OTHER
PROVISIONS OF THE FEDERAL SECURITIES LAWS.
THE FIRM WAS ORDERED TO DISGORGE $60.6 MILLION, IN
TRADING PROFITS AND CONCESSIONS FROM ITS ILLEGAL
ACTIVITIES. THE COMMISSION, ALLEGED THE FIRM, DIRECTLY
OR INDIRECTLY OFFERED AND SOLD SECURITIES IN INITIAL
PUBLIC OFFERINGS BY MEANS OF MISSTATEMENTS,
OMISSIONS, AND OTHER MANIPULATIVE AND DECEPTIVE
PRACTICES, ORCHESTRATED AFTERMARKETS FOR SUCH
SECURITIES AT ARTIFICIAL PRICES AND HEREAFTER
MAINTAINED, DOMINATED, CONTROLLED AND MANIPULATED
THE MARKETS FOR SUCH SECURITIES. [USDC FOR THE DISTRICT
OF NEW JERSEY, 91 CIVIL 4327, (LR-13241)]
2/09/99: 6/17/91 NASD EXPULSION
GRAYSTONE NASH WAS CENSURED, FINED $1,325,000 AND
EXPELLED FROM NASD MEMBERSHIP FOR VIOLATING ARTICLE
III, SECTIONS 1, 4 AND 19(a) OF THE RULES OF FAIR PRACTICE.
NASD ALLEGED THAT THE FIRM, ACTING THROUGH A CERTAIN
INDIVIDUAL, ENGAGED IN THE DISTRIBUTION AS SOLE
UNDERWRITER OF UNITS ON A BEST
EFFORTS CONTINGENCY BASIS AND ACCEPTED THROUGH ITS
CLEARING AGENT PURCHASERS' MONIES INSTEAD OF
REQUIRING THAT THEY BE PROMPTLY DEPOSITED IN A
SEPARATE BANK TRUST OR ESCROW ACCOUNT; MANIPULATED
THE MARKET PRICE OF SUCH COMMON STOCK IN THAT THE
FIRM BID FOR AND PURCHASED FOR ITS ACCOUNT AND
ATTEMPTED TO INDUCE AND INDUCED OTHERS TO PURCHASE
SUCH STOCK AT ARBITRARY PRICES; AND EFFECTED AS
PRINCIPAL, OVER THE COUNTER SALES OF SUCH COMMON
STOCK TO PUBLIC CUSTOMERS AT PRICES WHICH WERE NOT
FAIR. DECISION IS FINAL 6/17/91. [NASD COMPLAINT
ATL-1049]
Real stand-up guy.....
BTW, Kaufman put out those reports because Kaufman was trying to raise money for
the company.
Next
Previous
From: jjs64
Thursday, Feb 11 1999 9:19AM ET
Reply # of 62
I'll give you a hint...products are not unique (I've seen them at the Kaufman conference
last fall) and the people are not IMO ethical. I've posted this a million times before but
here goes again.....Quality companies with strong management simply DO NOT reverse
merge into shells. The only companies that do are those that are scams or those with
naive mgmt.
Since XDSL's CEO was a former broker and then also owned his own broker/dealer
(Nutley Securities) he is not naive about the financial market...so my only other choice is
that he's running a scam.
This stock will eventually go where all low-quality companies go...close to 0
P>S> I don't think my account allows me to short OTC:BB stocks. I thought maybe I could ride it up for awhile while they are pumping it, but that can be dangerous too. |
