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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: wonk who wrote (4329)	10/4/1999 11:06:00 AM
From: Q.	Respond to of 7056

Well, obviously Dorian Reed was just trying here to come up with something to say in a news release. Something that sounds better than: "the chairman is a convicted criminal with a record of fraud while the largest customer and investor are accused of being a HYIP scam operator." So once again he comes up with the claims of profitability. The validity of those claims are, of course, entirely dependent on whether you believe the revenues recognized from that organization that has also been accused of running the HYIP scams.

To: wonk who wrote (4329)	10/4/1999 11:16:00 AM
From: Q.	Read Replies (1) \| Respond to of 7056

The Company added over 2,500 new registered members through its new portal Is that very many for one quarter? I personally would never register, because it requires disclosing far more personal information than most people would care to tell. "We have almost 4,000 sponsors. And we have some keyword sponsors bidding as high as $35.00 per click-through on certain keywords." Are we talking big bucks here, or what? You can become a keyword sponsor for as little as $0.01, according to their site. If the maximum is $35, what is the average? And how much money is that, when you multiply it by "almost 4,000"?

To: wonk who wrote (4329)	10/4/1999 11:27:00 AM
From: Q.	Read Replies (3) \| Respond to of 7056

The Company also acknowledged the recent downward slide of the company stock price in recent weeks. Reed stated, "Our mission as a young and new public company that did not get millions in an IPO, is to stick to the fundamentals and make a profit. We are doing that. We can't operate a profitable business while consumed in a toe-to-toe battle with bashers and negative news reporting. Let the numbers speak for themselves quarter after quarter. We of course feel long term investors will do well with Hitsgalore.com if they do what we do: stick with the fundamentals and stay with company's that have a business model that works and that are capable of making a profit." Oh boy, there's lots of fun stuff in here. Let's take a look. Our mission as a young and new public company that did not get millions in an IPO, is to stick to the fundamentals and make a profit. We are doing that. Poor Dorian, he didn't get millions in an IPO. So he has to make a profit. He really is "doing that", isn't he? He does it, of course, by recognizing revenues from the place that is accused of running HYIP scams. Our mission .. is to .. make a profit. We are doing that. We can't operate a profitable business while consumed in a toe-to-toe battle with bashers and negative news reporting. Well, either he can make a profit or he can't. Which is it? Seems he can't make up his mind here. Is the problem that he can't run a profitable business if he must recognize revenues in a reasonable way? Will he eventually be force to do what some critics say is inevitable: recognize that the accounts receivable, the ones from the customer that is accused of running HYIP scams in order to buy herself a house, are doubtful? Let the numbers speak for themselves quarter after quarter. Does this really mean, "let the unaudited numbers be whatever we say they will be, quarter after quarter, through the device of electing to recognize whatever revenues we please from an institution that is accused of running HYIP "? We of course feel long term investors will do well with Hitsgalore.com ... Holy cow! You don't see this very often in a news release. In this sentence, has Dorian Reed crossed a line that he should not cross? Is he recommending his stock in a news release by making a prediction of a positive return on investment?

To: wonk who wrote (4329)	10/4/1999 10:32:00 PM
From: Level Head	Read Replies (1) \| Respond to of 7056

Dear wireless_wonk, Of course, your definitions are exactly right among financial executives and in a medium (such as an audited financial statement) where the technically correct definitions can be assumed to be the ones in play. There is a colloquial definition of cash flow as well, and in the forum of a Press Release, I am skeptical about the usage. Consider the usage, apparently inappropriate, of petroleum industry terminology in the same context. Imagine the defense of the phrase "cash flow" in that usage, in front of the SEC or other authority. The SEC would have a shot at nailing a misleading use if one has occurred, but a regular courtroom would not in my opinion. Having read through more than 1,000 pages of transcripts for AZNT dealing with securities issues, and having other exposures to the problem, the courts seem to me to be not much better equipped with financial and securities details than is Joe Public. That was my point, even if not well presented. But thanks for your considered response! In an entity with large debt service, the distinctions between EBITDA and other metrics can be large, neh? Level Head