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Microcap & Penny Stocks : SSOL / SSOLW -- SmartServ Online Services -- Ignore unavailable to you. Want to Upgrade?

To: Craig Bartels who wrote (139)	2/22/2000 9:22:00 PM
From: Craig Bartels	Respond to of 266

Other additional information: "The Company's financial statements for the period ended December 31, 1999 have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company incurred net losses of $7,124,126, $5,040,009, and $4,434,482 for the years ended June 30, 1999, 1998 and 1997, respectively, and as of December 31, 1999 had an accumulated deficit of $43,042,236 and a deficiency of net assets of $3,826,746. However, giving consideration to the just completed Offering, the Company has stockholders' equity at December 31, 1999, on a pro-forma basis, of approximately $863,700. The Company is also a defendant in several legal proceedings that could have a material adverse effect on the Company's financial position, cash flows, and results of operations"

To: Craig Bartels who wrote (139)	2/22/2000 10:16:00 PM
From: Austin S.	Respond to of 266

Whether you short or not is your own business, but if you're shorting based upon the language you've just quoted then you might better short about 500 other stocks, including ENGA, AMZN, EBAY, LCOS, IFCI, ETA, VRIO, PGEX, LIFC, PCLN, MSGI, etc. because the language you quoted is found in almost every company's forward-looking statements. My guess is that if you shorted SSOL @ $154 then you're about to get your plow cleaned. Nonetheless, good luck to you, too. biz.yahoo.com From Raging Bull: ragingbull.com To To summarize.... 1) The 10Q refers to the vast base of Strategic Marketing Partners in this document numerous times. IMO, this provides a cohesive environment for future partners as well as new deals with existing partners. 2) Management states that "most of the Company's revenues will ultimately be derived from consumers who purchase the Company's services through Strategic Marketing Partners." This will take place through the technology standard "bundling" process. SS will receive royalites from these bundled products/services. IMO, this, once again, is a positive breakthrough in that the purchasing public will not have to be saturated with SSOL-directed marketing before buying. Instead, the Strategic Marketing Partners, most of whom are household names, will sell SSOL products/services as a bundled package. Therefore, marketing and overall SG&A costs will be minimized thereby adding to net income. 3) Company results: Quarter ended 12/31/99 - revenues $913k vs. $344k (266% increase); Six months ended 12/31/99 - revenues $1.721mm vs. $694k (248% increase). IMO, extremely good progress. 4) The net income results can only be extracted by analyzing the full 10K as the Management Discussion does not address it. Net loss - quarter ended 12/31/99 - $(20,780,564) Net loss - quarter ended 12/31/98 - $( 1,533,275) NOW, as you know certain accounting principle requires all companies that operate under the accrual method of accounting (GAAP) to recognize certain revenues and costs at certain times and itervals (if you want to impress your CPA, the pronouncment relating to this principle is APB No. 25). This is the case here. This principle, and I'm quoting, "requires the Company to record compensation expense for changes in the fair value of the Company's common stock." This means, that for all option-based stock issued to officers or employees in satisfaction of compensation/bonuses, the increase in the market value of the stock becomes a charge (expense) to the Company until the options are exercised or expire. This is not uncommon, nor is it a concern, IMO. Now the good news, if the charge referred to above is removed (as a one-time or non-recurring charge), SSOL would have recognized net income of $581,504. I don't know about you but I consider this advent SIGNIFICANT. Remember, Amazon.com has yet to show a profit. * * * * * * * * * * And, as of Feb. 22nd, SSOL had 9000 subscribers and is adding over 30 per day. SSOL is expected to have over 16,000 subscribers @ $140 - $145 per month by end of 2000. Personally, if I were to try and short SSOL, I would've at least waited until a week after SSOL completes its New Orleans trade show where it is sharing the stage and booth with Microsoft from Feb. 28 - March 1.