Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Versatech (VITC) -- Ignore unavailable to you. Want to Upgrade?

To: Sid Turtlman who wrote (262)	12/24/1997 8:31:00 AM
From: Sid Turtlman	Read Replies (2) \| Respond to of 435

To All: Hagen admits dumping more DHMG stock! On top of the 30,000 shares he sold in October, Hagen just reported selling another 4,800 shares in November at $9.375. This isn't a huge amount of money, but keep in mind three things: 1) At the annual meeting he swore he would not sell any stock this year. 2) DHMG press releases and letters to shareholders keep attacking those shareholders who have the nerve to sell the stock, on the grounds that they are just helping out the evil shortsellers. 3) He's may well be understating the amount he has sold. Let me explain the third point in more detail. DHMG's shareholder structure has an unusually low percentage of its restricted shares officially held in the names of the officers and directors. About half of DHMG's stock is "restricted", yet owned by parties unknown to the public. For some time there has been a steady flow of 144 sales of restricted stock from private entities domiciled in various Caribbean towns known primarily for their money laundering industries. Is it possible that Hagen and his cronies secretly own and control one or more of these entities? I obviously don't know the answer to that. What causes me to wonder about this possibility, though, is the fact that most of DHMG's sales are not to real outside customers paying real money; they are to private entities controlled by insiders. So Hagen is quite adept at corporate shell games. As the DHMG house of cards topples to the ground, I wouldn't be surprised to see more 144 sales from the Cayman Islands and the Bahamas. In the meantime, DHMG is conducting an incredibly sleazy, boiler room campaign to get people to buy more stock, presumably to create some demand while insiders bail out. I have received e-mail now from a number of people saying that they have been called by Steve Krakonchuk, DHMG's VP of Sales, urging them to buy stock or, if they were shareholders, buy much more stock. Supposedly Steve is predicting a big increase in the stock price because of all these institutions that are lining up, about to buy the stock. Isn't that nice of him? He's telling you, so you can get in just ahead of the big boys. Uh-huh. He is also telling people "inside information" about big doings at the company. Interestingly, he made a bunch of calls last week after its auditors refused to do further business with DHMG, but somehow he forgot to mention that particular piece of inside information to his would be victims. Memo to Steve: Do you sincerely want to go to jail? Like the idea of not worrying where your next meal will come from? Then keep dialing for dollars.