Rod Young a funny guy. Hired crooks at the peak to pump Eagle stock.:
ONE BIG SCAM
:"Although Mr. HAAS often appears as the author of the
analyst reports, he cheerfully admits to having scant business training. Stockreporter relies on the companies to provide information for the reports. "We don't have the time or the capacity to do all of the reporting," he says.
"We're not analysts."
====================================================
"EAGLEtech Communications, Inc. is one of the most exciting companies to come to our attention in recent years," Dennis C. Hass from STOCKREPORTER.DE said today
STOCKREPORTER.DE Announces Investment Opinion on EAGLEtech Communications, Inc
Business Wire, August 11, 1999
NEW YORK--(BUSINESS WIRE)--Aug. 11, 1999--
STOCKREPORTER.DE Begins Coverage of EAGLEtech Communications (EATC)
With a Strong Buy Recommendation and a Conservative Price Target
of $14 Per Share
EAGLEtech Communications, Inc. (OTC BB:EATC) today received a strong buy recommendation from the STOCKREPORTER.DE, a leading European financial Internet publication at www.STOCKREPORTER.DE. The STOCKREPORTER.DE specializes in the coverage of micro caps and undervalued OTC and BB companies. The successful team of STOCKREPORTER.DE is the first independent analyst to begin coverage of CancerOption.com and to release an investment opinion. The STOCKREPORTER.DE begun coverage with a conservative target price of $14 per share for the year 2000 at a current share price of about $7 offering an amazing short, mid and long term potential.
All buy recommendations of the successful STOCKREPORTER.DE team have shown -without any exception - an extraordinary share price performance since STOCKREPORTER.DE has issued its recommendations for the respective company. Thus the portfolio of STOCKREPORTER.DE is a very successful and very reliable one, featuring e.g. FutureLink Distribution (FLNK), Teltran International (TLTG), MonsterDaata.com (MDDC), Antra Music Group (RECD), CancerOption.com (CAOP) and now brand new EAGLEtech Communications, Inc. (EATC) which is going to be the next extremely successful investment opportunity.
"EAGLEtech Communications, Inc. is one of the most exciting companies to come to our attention in recent years," Dennis C. Hass from STOCKREPORTER.DE said today. He continued: "In telecommunication it is increasingly difficult and expensive for callers to reach intended parties and for mobile professionals to stay in touch with important contacts. It is estimated that business professionals lose seven hours per week. To address this challenge, EAGLEtech Communications, Inc. (OTC BB:EATC) has developed proprietary unified communications products and services. With the proliferation of telecommunications tools (mobile phones, fax machines, pagers, etc.) and the ever increasing prevalence of email and Internet services, "unified messaging services" are quickly becoming a necessity for mobile professions and others who work outside of a traditional office and need a single point of access to messages. In fact, the predicted growth in unified messaging is estimate to be $31 billion by 2006. Referring to this enormous and unlimited growth potential we are particularly pleased to issue today a strong buy recommendation for EAGLEtech Communications, Inc. (EATC)."
Dennis C. Hass added: "We are strongly convinced that this company has an extremely strong potential. Therefore we strongly believe that this company is going to belong to the best performing shares of the OTC and BB segment." He continued: "In our opinion this share really deserves a strong buy recommendation and has enormous potential from the next few weeks and months way into the year 2000."
The report of STOCKREPORTER.DE includes the following information:
COMPANY OVERVIEW
EAGLEtech was incorporated in the State of Florida in December 1996 to manufacture, market and distribute unique communications products. A major marketing opportunity was recognized for any company which could develop beyond a unified messaging service a low cost unified communications call management solution. The solution had to go beyond mere message storage and provide the ability for the user to be reached at any location, at any time. In addition the solution had to provide for one central location for all calls, messages and faxes.
In today's competitive business environment, success often depends on the ability to satisfy customers' demands for availability and responsiveness. This has become increasingly difficult as workers spend more time on the road as well as working at home and in branch offices.
Currently, most mobile and remote professionals have cell phones, pagers, laptops, email and corporate voice mail in order to stay in contact with co-workers and customers. Still with all these available business tools, three out of four calls fail to reach their intended party. EAGLEtech provides solutions that increase productivity and efficiency.
EAGLEtech delivers a full suite of communications services that integrate seamlessly with a company's existing communications infrastructure or work as a stand alone solution. With these services, no money is invested in desktop or telecommunications hardware. Rather there is one set monthly charge irrespective of how many minutes are spent utilizing these services. Because of the proprietary manner in which EAGLEtech delivers these services, EAGLEtech is and will remain the low cost communications service provider while operating at high profit margins.
EAGLEtech's proprietary solution to this telecommunications challenge is the "EAGLEOne" flat rate service which includes: -0-
-- "One Number-Follow Me"- Provides for call transfers of up to four
telephone numbers.
-- "EAGLEAttendant"- Autoattendant greeting with a custom recorded
business greeting.
-- "EAGLEAnnounce"- Screens your calls, when the caller announces
his or her name, you can take the important calls and send others
to Voice Mail.
-- "EAGLEMail"- Voice mail, callers have the option to leave a
detailed message of up to five minutes in length. Calls are
automatically deleted after 30 days.
-- "EAGLEMessage"- EAGLEMail messages are delivered within minutes.
Messages are re-delivered until you are found. You specify how
often and how many times deliveries are attempted.
-- "EAGLEWeb"- Set up and make changes to your transfer numbers,
message delivery parameters, etc. using your web browser, or when
on the road, from a cell phone. Messages can be delivered to your
email address and heard on a multimedia computer.
-- "EAGLEFax"- Store and forward your faxes to any fax machine.
EAGLEFax will notify you when you have received a fax.
What these suite of products provide is a universal local number which connects the business professional, wherever he or she is working, to important calls and messages through telephone interfaces. Using one universal access number, the company for its employees or the business professional for himself or herself receives for one flat fee per month regardless of how many minutes are spent utilizing these services:
-- Local access using one telephone number
-- Call forwarding of up to four numbers
-- Integrated voice mail system
-- Call announcement
-- Efficient call management
-- Internet management and message delivery
In addition, company accounts will include customized solutions such as fax on demand or the "EAGLEDirectory." After the autoattendant answers with the customized company greeting callers, EAGLEDirectory gives a directory of extensions formatted in the method which works best for the company.
EAGLEtech has developed a proprietary switching capability which provides an ongoing cost advantage to the provision of its services. The Company's enhanced switching device increases significantly the capacity of that switching device.
All other communications service providers utilize switches which have at minimum two lines bound together, the incoming and the outgoing, for the duration of a typical seven minute business call. For a standard T-1 switch, 24 simultaneous conversations are possible. During peak use, this limits all other communications providers to 300 subscribers per T-1 switch.
The EAGLEtech proprietary solution increases the density for the same T-1 switch from 300 to 1500 to 2000 subscribers during peak use. EAGLEtech has filed a patent application with the United States Patent and Trademark Office for this proprietary solution and will pursue foreign patent protection for critical markets.
EAGLEtech will customize a system for a company and build a switch with the standard capacities of the EAGLEOne Enhanced Service Bureau. This system will integrate seamlessly for the company. For its Enhanced Service Bureau customers, EAGLEtech will build systems for each defined geographical areas. Additional switches may be added to a system at any time as demand increases in an area for EAGLEtech's products and services. The cost of assembling and maintaining these proprietary switches are minimal.
GROWTH INDUSTRY
The average business professional uses six telecommunications tools:
-- Playing telephone tag
-- Placing multiple unanswered phone calls
-- Waiting for information
-- Receiving disruptive phone calls
-- Getting busy signals
What users need is a way to simplify, allowing them to use all these devices more efficiently so they can do their jobs more effectively.
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=======================================
:"Although Mr. HAAS often appears as the author of the
analyst reports, he cheerfully admits to having scant business training.
Stockreporter relies on the companies to provide information for the reports.
"We don't have the time or the capacity to do all of the reporting," he says.
"We're not analysts."
Glowing Reports
As payment, World of Internet received 270,000 shares of Adair at 10 cents
apiece. In return, World of Internet's Stockreporter service provided a
Hamburg listing and a glowing analyst report, calling Adair a "strong buy"
and predicting a "conservative" price target of $3.90 a share.
Indeed, shortly after Stockreporter issued its report, Adair hit its 52-week
high. But the Hamburg listing has been a bust, says the company's chief
executive officer, Bill Adair. "Stockreporter pitched this as a way to build
active interest in our company, but ####, I haven't seen it," he says.
Other World of Internet clients listed here include Hartcourt Cos., Long
Beach, Calif., which has at various times been involved in gold mines, real
estate and Chinese Internet ventures. Winners Internet Inc., St. Augustine,
Fla., a former mining company that now says it is developing software, is
also listed. Other firms listed on the Hamburg bourse were recently delisted
from the Bulletin Board in the U.S., leaving them to trade in the so-called
Pink Sheets, where price quotes aren't readily available and regulatory
scrutiny is light.
DENNIS HAAS, the 29-year-old executive vice president and co-founder of
World of Internet, says he and two friends came up with the idea for the
business a few years ago when they were humanities students at a college
near Hamburg. Although Mr. HAAS often appears as the author of the
analyst reports, he cheerfully admits to having scant business training.
Stockreporter relies on the companies to provide information for the reports.
"We don't have the time or the capacity to do all of the reporting," he says.
"We're not analysts."
Some Pretty Lonely U.S. Stocks Call Hamburg Exchange Home
August 24, 2000
By CHRISTOPHER COOPER
Staff Reporter of THE WALL STREET JOURNAL
HAMBURG, Germany -- Some obscure U.S. companies, tired of being
ignored by American investors, are seeking relief in an unlikely place: the
tiny Hamburg Stock Exchange.
Driven to the brink of obsolescence by the far larger bourse in Frankfurt, the
Hamburg exchange now offers a new specialty: micro-cap U.S. stocks. A
new trading board, launched in January, currently features about 40
companies, all of them based in North America, few with any deep
connection to Europe.
Yet some of these stocks generate more trading volume in Hamburg than
they do in the U.S. The board, called the High Risk Market, is the product of
an unusual alliance between the exchange and a Hamburg-based
stock-promotion firm, World of Internet.com AG.
World of Internet, which operates a financial Web site called
Stockreporter.de (stockreporter.de), is one of many paid stock touts, offering
publicity and analyst reports about tiny U.S. firms in return for cash and
stock options. With its deal in Hamburg, World of Internet also offers clients
a stock listing there. About half of its 50 or so customers have signed up.
Who's Trading Here?
Typical of the companies on the exchange is Rhombic Corp., which
describes itself as a scientific research company working on, among other
things, a material the company says may one day replace silicon. The
company, founded in Nevada but based in Vancouver, British Columbia,
reported a first-quarter loss of $605,000 on revenue of $1,207. It is listed on
the OTC Bulletin Board in the U.S., where investors have shown little
interest.
In March, after Rhombic paid World of Internet $18,000 for "a package of
investor relations services," which included a listing in Hamburg, interest in
the outfit picked up. These days, some 200,000 Rhombic shares change
hands in a single session in Hamburg, according to local securities firm
Borsenmakler Schnigge AG, more than double the average volume in the
U.S.
"Peculiar, isn't it?" says Larry Horowitz, a spokesman for Rhombic. "The
Germans understand our company better than investors in the U.S."
Bids and Beer
For the Hamburg exchange, Germany's oldest bourse but one of its smallest,
creating the High Risk Market is an attempt to stand out from the crowd of
regional bourses, says Deputy Business Manager Kay Homan. "People need
to know that Frankfurt isn't the only exchange in Germany," he says.
Walking through the cavernous trading floor, all but deserted on a recent
midday, he passes a lone trader, who monitors a trading screen in between
swigs of beer. "We need to advertise, but we don't have any money," Mr.
Homan says.
At this point the new board is "pretty much a hobby," Mr. Homan says,
generating little income for the exchange. The bourse hopes it will grow into
something more lucrative.
The bourse doesn't claim to offer much oversight of companies listed on the
new board. Instead, officials say, they rely on the U.S. Securities and
Exchange Commission for policing. The name alone should make investors
wary, Mr. Homan says: "It's called the High Risk Market -- that should be
warning enough."
The market has proved a boon to World of Internet, which charges its
customers a fee, generally several thousand dollars, to list in Hamburg.
Not all of the companies are as happy as Rhombic with World of Internet's
services. Houston-based Adair International Oil & Gas Inc. also listed in
Hamburg in March but has yet to catch on with German investors. The
company, which lists an oil lease in Yemen among its assets, recorded a loss
of $1.14 million for the first quarter. Over the past year, the company's stock
price has fluctuated between a high of $3 and a low of about 12 cents.
Glowing Reports
As payment, World of Internet received 270,000 shares of Adair at 10 cents
apiece. In return, World of Internet's Stockreporter service provided a
Hamburg listing and a glowing analyst report, calling Adair a "strong buy"
and predicting a "conservative" price target of $3.90 a share.
Indeed, shortly after Stockreporter issued its report, Adair hit its 52-week
high. But the Hamburg listing has been a bust, says the company's chief
executive officer, Bill Adair. "Stockreporter pitched this as a way to build
active interest in our company, but ####, I haven't seen it," he says.
Other World of Internet clients listed here include Hartcourt Cos., Long
Beach, Calif., which has at various times been involved in gold mines, real
estate and Chinese Internet ventures. Winners Internet Inc., St. Augustine,
Fla., a former mining company that now says it is developing software, is
also listed. Other firms listed on the Hamburg bourse were recently delisted
from the Bulletin Board in the U.S., leaving them to trade in the so-called
Pink Sheets, where price quotes aren't readily available and regulatory
scrutiny is light.
DENNIS HAAS, the 29-year-old executive vice president and co-founder of
World of Internet, says he and two friends came up with the idea for the
business a few years ago when they were humanities students at a college
near Hamburg. Although Mr. HAAS often appears as the author of the
analyst reports, he cheerfully admits to having scant business training.
Stockreporter relies on the companies to provide information for the reports.
"We don't have the time or the capacity to do all of the reporting," he says.
"We're not analysts."
Disclosure of the Arrangement
Generally, U.S. securities laws allow companies such as World of Internet to
provide paid analyst reports, so long as they disclose the payments. World of
Internet does so, behind a link on its Stockreporter Web site. Asked if he
thought all Stockreporter readers know of the disclosure, Mr. HAAS shrugs.
"Maybe some people don't know," he says.
To arrange for its listings in Hamburg, World of Internet relies on
market-making firms, usually Borsenmakler Schnigge. That company's
Hamburg broker, Klaus Pinkernell, also sits on World of Internet's board of
supervisors.
Portly and pony-tailed, Mr. Pinkernell hunches over his computer in Berlin,
watching the trading on the Hamburg Exchange and occasionally exclaiming
at the screen. "Robbers!" he cries, as he watches a lowball bid for Rhombic
flash over the monitor.
The Market Maker
Mr. Pinkernell makes his money primarily through arbitrage between the
U.S. and German exchanges and by charging a small fee for executing
trades. Because Hamburg requires its companies to be sponsored by a
market maker, he also charges World of Internet about $2,500 per listing.
"Believe me, they charge their clients much more," he says.
Mr. Pinkernell takes an existential view of the High Risk Market and the
companies and people who trade there.
"People who buy stock in these companies, I wouldn't call them investors,"
he says. "I'd call them gamblers."
Write to Christopher Cooper at christopher.cooper@wsj.com
=============================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16680/ September 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. TORSTEN PROCHNOW D/B/A/ STOCKREPORTER.DE, DENNIS C. HASS AND WORLD OF INTERNET.COM AG C00-3199-MJJ (USDC N.D. Calif.)
The Securities and Exchange Commission announced today that it filed a federal court action in San Francisco against three residents of Germany, Torsten Prochnow ("Prochnow") d/b/a Stockreporter.de, DENNIS C. Hass ("Hass") and World Of Internet.com AG ("WOI"). The Commission's complaint alleges that from at least June 1999 through the present, Prochnow and Hass, through WOI, a private German corporation they own, have touted the stocks of approximately 64 United States public companies under the name Stockreporter.de. The complaint further alleges that the touts have been disseminated through postings on Stockreporter.de's Internet website, which may be viewed in both the English and German languages, and numerous press releases. Moreover, the complaint alleges that during different time periods the website contained false statements that Stockreporter.de's principals both had "long-term" trading intentions and were not compensated for their touting, as well as baseless financial projections concerning one of the touted companies. According to the complaint, during various periods both the website and press releases failed to disclose both the nature and source of such compensation as well as the defendants' personal stock sales shortly after the touting, which caused the price and trading volume of the stock of certain companies to increase significantly in the short term. The complaint alleged that on at least 15 occasions, the defendants sold their holdings of the touted stocks into the inflated market they created, thereby realizing profits of $111,530. This action is part of the fourth nationwide Internet fraud sweep conducted by the Commission since October 1998.
The Commission's complaint alleges that Prochnow, Hass and WOI violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(b) of the Securities Act of 1933. The Commission seeks disgorgement, a permanent injunction and civil penalties. Without admitting or denying the Commission's allegations, the defendants have consented to the entry of an order that would enjoin them from future violations of the foregoing provisions and disgorge $111,530 plus $6,414 in prejudgment interest and would require Prochnow and Hass each to pay a $50,000 civil penalty.
For tips on how to avoid Internet "pump-and-dump" stock manipulation schemes, visit sec.gov . For more information about Internet fraud, visit sec.gov . To report suspicious activity involving possible Internet fraud, visit sec.gov. For a description of other SEC enforcement actions involved in this Internet Market Manipulation Sweep, visit sec.gov.
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