1/10/00 9:01:00 AM Chameleons, Lemmings and Other Creatures
by The Stock Detective
ZiaSun ZSUN 4/28/99 $11.07* $14.13 +28%
Oops. Looks like ZiaSun had second thoughts on the $14 million in goodwill it initially claimed in its 10SB filing. An amended version of the document slashes that amount to $2.5 million, with no apparent explanation. But wait, the filing that lists $14 million in goodwill attributes it to the acquisition of Asia4Sale and Online Investor Advantage. The revised statement attributes the $2.5 million in goodwill to Online Investor Advantage only. Does that mean ZiaSun initially thought Asia4Sale was worth $12 million more than it paid for it? And if that's so, why did the company recently unload Asia4Sale for a paltry (by comparison) $5 million? Maybe the next amended 10SB will give investors some insight.
* price adjusted for 2-for-1 split on 5/24/99
Where are they now? January 10, 2000
The following table lists some of the companies which have been featured as "Stinky Stocks" on Stock Detective, and provides a quick update of these companies' latest shenanigans. Stock prices are as of the market close on January 7, 2000.
Click the company name to view the original Stock Detective report.
Company Symbol Date Featured Price Current Price Change
Cy Post POST 9/24/99 $11.68 $3.50 -70%
Aside from filing a quarterly report with the SEC, this data encryption company was quiet in December. But what did that filing tell investors? Well, Cy Post's main sources of income was revenue from two acquisitions; its growth plan is based on still more acquisitions; and the funding for these acquisitions will come primarily from a dicey line of credit.
MSU Corporation MUCP 6/19/99 $5.50 $2.44 -56%
There's been no news to document what, if any, progress MSU Corp. has made since announcing alliances with two U.S. companies. MSU, which is in its second incarnation as a manufacturer of TV-top web access hardware, got some stiff competition this week. Intel Corp., the hardware component of the WinTel computer monopoly, announced it its entry into the PC-less Internet access market.
ZiaSun ZSUN 4/28/99 $11.07* $14.13 +28%
Oops. Looks like ZiaSun had second thoughts on the $14 million in goodwill it initially claimed in its 10SB filing. An amended version of the document slashes that amount to $2.5 million, with no apparent explanation. But wait, the filing that lists $14 million in goodwill attributes it to the acquisition of Asia4Sale and Online Investor Advantage. The revised statement attributes the $2.5 million in goodwill to Online Investor Advantage only. Does that mean ZiaSun initially thought Asia4Sale was worth $12 million more than it paid for it? And if that's so, why did the company recently unload Asia4Sale for a paltry (by comparison) $5 million? Maybe the next amended 10SB will give investors some insight.
* price adjusted for 2-for-1 split on 5/24/99
ImaginOn IMON 2/26/99 $5.93 $4.19 -29 %
In less than a year, ImaginOn has changed its focus from being king of the next generation of search engines to "developing and marketing broadband Internet Television products." As recently as November, ImaginOn was still hawking its WebZinger search engine as its flagship product. But when WebZinger failed to attract much of a following, ImaginOn apparently repackaged it as one component of its new TV venture.
Millionaire.com MLRE 12/30/98 $21.63 $3.38 -84%
Not content with the marketing potential of the Internet, Millioniare.com is branching out into the commoner's medium - television. According to a press release, Millionaire.com founder's Robert White will take the lead role in what sounds an awful lot like a knock off of "Lifestyles of the Rich and Famous." The company says the show will air on E and on broadcast stations in the top 25 markets. It's not clear, however, whether it will be part of those outlets' paid programming (read: advertorial). Also in December, Millionaire.com filed its 10 SB with the Securities and Exchange Commission.
PinkMonkey.com PMKY 12/03/98 $13.50 $1.75 -87%
Here's another company that's given up on its initial marketing ploy in hopes of reaching a broader audience. When PinkMonkey first hyped itself up more than a year ago, it said its site would be to students online what the Cliff's notes racks were to students who waded through English Lit before pre-World Wide Web. But with few takers, the site has had to look for new ways to attract students to its site. Since ecampus.com has already staked out the burping alphabet crowd, PinkMonkey instead is luring students with curriculum guides and study tips through its new focus, called Core Concepts. We're pretty sure most students whose parents have forced them to the site through a parental control button, have instantly renamed it Bore Concepts. Investors, apparently agree.
Great White Marine Recreation Inc. JAWS 10/29/98 $2.22 $0.19 -91%
The following headline from a Dec. 20 press release pretty much says it all: "Great White Marine and Recreation Inc. Announces Suspension of Business Efforts."
DNA Medical Technologies DNAT 08/31/98 $1.03 $0.06 -94%
Just inches away from becoming an empty shell.
Rhombic Corp. NUKE 06/22/98 $0.94 $4.25 +352%
Could this company be in the throes of another pump 'n dump? The charts show quite a spike on little news - Rhombic recently acquired the rights to a solid-state laser, but terms of the deal were not disclosed. And while Rhombic claims there are numerous commercial applications for its newly acquired product, it doesn't say whether there are any contracts pending to put it to such use.
Platforms International PLFM 05/20/98 $0.92 $0.58 -37%
Although Platforms claims to be the next big thing in wireless communications, not to mention a competitor in developing the next generation of space shuttle, its only true prowess seems to be turning non-events into news. In its latest press release, Platforms International announced that its application for an official telecommunications classification in Brazil has been approved. Hmmm, so that means that Brazil has officially said it's a telecommunications company. In May 1998, Platforms International was telling investors that a lucrative wireless contract in Latin America was imminent. Almost two years later, and it's barely gotten its credentials. Time to play catch up?
ProNet Link PNLK 05/15/98 $6.37 $2.31 -64%
Despite bold predictions when the site launched in 1998, ProNet Link is still struggling to sign up subscribers to its international trade portal. December marked its first marketing agreement with a domestic trade organization, a small non-profit group that focuses on California.
Eventemp ETMP 05/06/98 $0.00 -100%
Delisted August 1998.
Zulu-tek ZULU 03/25/98 $5.40* $0.05 -99%
The company that once claimed it would be a major player in the burgeoning world of online advertising, has all but dried up and blown away. Although a trickle of trades seems to cross every once in awhile, Zulu-tek is certainly bound for nowhere.
* price adjusted for 1-for-10 stock split effective Dec. 31, 1998
Saf-T-Lok LOCK 02/27/98 $3.66 $1.13 -69%
Sounds like Saf-T-Lok is going to the prom. According to a preliminary proxy statement filed with the SEC, Saf-T-Lok will ask shareholders at its Jan. 31 meeting to authorize another 10 million shares of common stock. That will bring the company's total authorized capitalization to 30 million shares. One of the goals of this dilution is to keep the company afloat with short-term working capital while it seeks a "seeks a strategic partner or partners who can provide an immediate revenue stream and/or proven marketing expertise capable of increasing sales revenue to a self-sustaining, profitable level." And why would another company want to hook up with Saf-T-Lok? Well, the company seems to think its Nasdaq listing will make it a pretty hot date. But is it cheap and easy?
B.A.T. International BAAT 02/07/98 $1.63 $0.09 -94%
This is perhaps the only company that's been booted off the bulletin board that still has enough chutzpah to issue 10 press releases in a single month. And what, pray tell, did Joe LaStella have to say in December? Well, first of all, the "corporate raiders" B.A.T. was battling backed off. Then Joe & Co. managed to milk a product appearance on the Donny & Marie show for no fewer than three press releases. Still eager for hype, B.A.T. told the world - twice - that it was publishing a free Y2K survival checklist. B.A.T. finished off the year with news that it got a battery plant online in India, and then opened 2000 with a dispatch on patent applications being filed.
CopyTele COPY 02/06/98 $2.25 $0.91 -60%
After spending more than 25 years and $45 million developing and marketing the next generation of copier/fax/phone (none too successfully, we might add) CopyTele now says it has the low-cost answer to encryption for all of those devices.
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