Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (39093)	6/21/1999 1:21:00 AM
From: Lola	Respond to of 122087

Here's somebody who really needs to bookmark your profile Anthony! Message 10197271 You must forgive his naivety ... he's a Canadian. Lola:)

To: Anthony@Pacific who wrote (39093)	6/21/1999 2:27:00 AM
From: Jay Fisk	Respond to of 122087

Here's one that may have some major tankage: Anyone long on HYBR is sitting on a timebomb due to pending dilution. The big unknown is the date of distribution of these new 3,000,000 shares. When they hit the market HYBR will take a MAJOR hit as these "new" owners have no reason to hold. Wowie, 22.6% dilution, this one's gonna drill some holes, at the current trading rate of less than 50K per day (I'm optimistic !) this one is easily less than a buck ! Here's the OFFICIAL HYBR version from the 10Q: ""In March 1999, we (HYBR) and the other parties to the state class action lawsuits and the federal class action lawsuits (other than PwC) reached an agreement in principle to settle the lawsuits. The agreement is subject to the parties' entering into a binding stipulation of settlement and approval by the U.S. District Court for the Northern District of California. Under the agreement in principle, (i) our insurers would pay $8.8 million on our behalf (and on behalf of the other officer and director defendants), (ii) we would issue 3.0 million shares of our Common Stock to the plaintiffs (the number of shares would be increased proportionately to the extent that there are more than 10.5 million shares of our Common Stock outstanding on the date of distribution so that, as of such date, the plaintiffs would hold approximately 22.6% of all of the shares of our Common Stock that are then outstanding), (iii) if we are acquired within nine months after March 9, 1999, the date of the agreement in principle, then, in addition to the consideration referred to in (i) and (ii), we would pay to the plaintiffs an amount equal to 10% of the consideration received by our stockholders in the acquisition. "" The key to the timing is the date of distribution. Need to do some more research on this one.

To: Anthony@Pacific who wrote (39093)	6/21/1999 11:05:00 PM
From: StockDung	Read Replies (4) \| Respond to of 122087

LOS ANGELES, June 21 (Reuters) - A man who posted a fake news story on the Internet earlier this year, in what prosecutors said may have been the first instance of Internet-based stock manipulation, pleaded guilty on Monday to federal securities fraud. Gary Dale Hoke, 25, a former employee of PairGain Technologies Inc., was arrested on April 15 and charged with posting a bogus story that said PairGain was the target of a billion-dollar corporate takeover. The fabricated news story, which appeared on a Web site which purported to carry stories from Bloomberg News, sent PairGain <PAIR.O> stock soaring 31 percent before tumbling back down when the hoax was revealed. Prosecutors said Hoke, since fired by PairGain, may have been the first to perpetrate a "stock manipulation scheme" via the Internet. Hoke, who pleaded guilty to two charges of securities fraud in federal court in Los Angeles, faces as much as 20 years in prison and $2 million in fines when he is sentenced Aug. 30. His guilty plea and federal sentencing guidelines mean, however, that he is likely face a lesser penalty. A spokeswoman for PairGain was not immediately available for comment. In pleading guilty to U.S. District Judge Consuelo Marshall, Hoke admitted on Monday that he posted the bogus report with the purpose of defrauding buyers and sellers of PairGain stock, said Assistant U.S. Attorney Christopher Painter. Hoke owned shares of PairGain common stock and options to purchase more, and intended to profit from the phony report, Painter said. The false news story said PairGain -- a Tustin, California, maker of high-speed access phone products -- was going to be taken over by an Israeli company for $1.35 billion. The report came amid rumors that PairGain would be acquired by another company, and investors who paid an inflated price for PairGain stock were defrauded when the price fell back to its pre-hoax levels, prosecutors said. The seesawing of PairGain stock highlighted the perils that investors face as they weigh tips from Internet bulletin boards and chat rooms, where postings go largely unregulated and rumors spread like wildfire. Hoke, a computer engineer in PairGain's Raleigh, North Carolina, design center, attempted to hide his identity when posting the fake news story, prosecutors said. FBI agents were able to track him down using Internet Protocol addresses that were recorded when he accessed certain Web page services. 22:36 06-21-99