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Gold/Mining/Energy : Diversinet ( DVNTF / DVNT ) aka -- Ignore unavailable to you. Want to Upgrade?

To: Justin Franks who wrote (387)	4/1/1998 7:43:00 AM
From: TERRY MURPHY	Read Replies (2) \| Respond to of 1242

As an independent microcap investor and finding the DVNTF story somewhat fascinating a friend of mine and myself have spent the last 2 days doing due-dilligence. While I was very skeptical going in, the story appears to be clean. Key things I have learned are as follows: 1. The company does file w/ the SEC because I was sent the filings. They just don't file electronically yet but Nagy told me they will begin to do so next quarter. 2. Nagy's background seems to check out well. My friend and I searched NEXIS/LEXIS and found a number of articles discussing how his consulting firm, CIT Canada (which Nagy said he built to 85 employees from nonthing) was helping a number of Canadian blue chip clients including Chrysler Canada and a prominent Canadian bank. 3. My friend spoke w/ Elgamel at NSCP twice and he is very excited about the technology and actively involved in the company. He mentioned to my firend that he was going to be helping to set up the company's California office. It is important to keep in mind that Elgamel was formerly an engineer w/ RSA so he knows the security market well. 4. Clegg and Knickerson both seem to check out OK and both are also on the board of CIT Canada, which Nagy is now Chairman of but no longer CEO since his time is being devoted to DVNTF. 5. My friend spoke to the individual beta testing the DVNTF product for the State of Florida. The guy went on for about an hour saying he had evaluated products from Entrust, VRSN, etc. and was extremely impressed w/ DVNTF's technology. Florida wants to use it for electronic voting. 6. Banks, et al. do own 25% of the stock but Nagy assured me that they are treated as passive shareholders and have no say in the day to day running of the company. 7. The technology did not materialize out of thin air--it was, in fact, acquired in November of 1996 for $10,000,000 from an Israeli company. I asked about any pending litigation and Nagy said none was pending. If anyone has any real proof of litigation, please site your source so I can check it out. 8. Annual shareholders meeting will be April 28th w/ the product introduction still scheduled for May. I expect other contracts similar to the one signed w/ the Canadian telecom company to be signed fairly soon. Nagy had a blue chip client list of Canadian companies at CIT and he should be able to leverage off of these relationships to lock in business for DVNTF. All of my due dilligence as well as that of my friend checked out very clean. Maybe I'm missing something but if I'm not, this stock is a home run given VRSN's market cap. Hope this helps. Terry