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Non-Tech : Starnet (SNMM)Online gaming, sexsites, lottery, Sportsbook -- Ignore unavailable to you. Want to Upgrade?

To: Dave Kiernan who wrote (3928)	7/28/1999 8:36:00 AM
From: Gator	Read Replies (2) \| Respond to of 8858

STARNET COMMUNICATIONS' BOGUS LAWSUIT & UPCOMING EARNINGS As if the wild gyrations of Internet stocks were not enough, many investors panicked today on news of a $1 billion lawsuit against Starnet Communications (OTC BB: SNMM). The news was generated in the form of a press release issued by a company called Las Vegas Casino, inc., claiming to be a licensee of Starnet's wholly owned subsidiary, Softec Systems Caribbean, Inc. Las Vegas Casino claimed damages from what they called “a very substantial number of breaches of agreement” including “grave irregularities in their accounting systems, too many serious bugs in their software; their technical and e-cash support is extremely deficient, with very serious problems such as massive over-billing of credit card accounts.” As might be expected, the price of Starnet shares plunged, going from the day's high of 22 11/16 to 10 in a matter of minutes after the release. Hopefully, ISN readers were not among those unlucky enough to have sold their shares at $10! Shortly after, Starnet issued a press release denying it was in receipt of a lawsuit. Starnet shares rocketed to near $16 before finally closing the day at 14 7/16. The price action was so astounding, the well-respected CBS Marketwatch reported on the bogus lawsuit as well: cbs.marketwatch.com After the market closed, Starnet Communications revealed that its wholly-owned subsidiary, Softec Systems Caribbean Inc., had indeed licensed software to Las Vegas Casino but the agreement had been terminated on July 23, 1999 due to non payment of approximately $203,000 for monthly licensing fees and had commenced collection proceedings against Las Vegas Casino, inc. A recent article published on RGTonline entitled “Who's on First” (see: www.rgtonline.com/newspage/artlisting.cfm/2773), noted this was not the first time a gaming software provider has encountered payment problems with the operators of Las Vegas Casino, inc. It is the opinion of Internet Stock News TM that the charges made by Las Vegas Casino are malicious and made out of spite because their license has been cancelled. Regarding the specific claims that the software is faulty, it seems difficult to believe that Softec's 45 other licensees would currently have 22 casinos operating successfully if it was flawed as Las Vegas Casino's claims. We cannot tell you how to invest, as everyone must make their own decisions. However, we have increased our ownership of Starnet by purchasing shares on the open market. Watch for Starnet's Earnings Announcement after the bell this Thursday! Sincerely, ISN >>>> Internet Stock News Report on Starnet...Gator