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Technology Stocks : CNKT - Connect Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Lawrence Burg who wrote (293)	5/26/1998 4:05:00 AM
From: THOMAS	Read Replies (1) \| Respond to of 953

To Anyone Interested in CNKT: Please note that CNKT will continue to lose approximately $3.0 mil. in equity worth per quarter (3 months) for at least the next year (CNKT's equity worth will most likely decline by $9.0mil. by the end of Q4 98). This will result in the company issuing additional common shares to fund its operations, and the common stock's price may decline below $2.00/s to trade between $0.50 to $2.00/s (this has already occured as the recent low was 1 29/32). Please note the following 10Q Q1 98 (first quarter of 98) EDGAR form release quote regarding management's discussion of future operating results: "The Company anticipates that operating expenses will continue to exceed revenues, resulting in continuing net losses and negative cash flow from operations for the foreseeable future." In addition, competition from other established companies is heating up, and is becomming threatening. Note openmarket, microsoft, ibm, hp, and netscape's news releases regarding their plans to enter the e-commerce field (with the exception of openmarket). Also, please note how pathetic the salary levels are for a company that does not generate a single red cent of profit per share (source, EDGAR-the government-i.e. Securities and Exchange Commission for those of you who do not know): " Dear Craig: The Board of Directors of CONNECT, Inc. (the "Company") is pleased to offer ------- you the position of President and Chief Executive Officer commencing as of April1, 1998. You will report directly to the Board and all CONNECT officers will report to you. 1. SALARY. Your salary for the calendar year 1998 will be $225,000 per annum, payable in accordance with the Company's standard payroll policy, commencing effective as of April 1, 1998. 2. PERFORMANCE BONUS. For each of the second, third and fourth quarters of fiscal 1998, you will be eligible to receive aggregate bonus payments of up to $150,000 payable in accordance with the Company's standard Executive Bonus Plan for the 1998 Fiscal Year, a copy of which is attached to this letter as Attachment A. " Bill Gates, CEO of Microsoft earns $550,000 per year from his salary. Yet here is CNKT, a company deep in red, paying its CEO half of what Gates earns from a company that is solidly profitable (that is Microsoft-ahem). Also note the unacceptable pay to CNKTs' prior CEO Gordon Bridge for his 1yr. "consulting agreement" (source, EDGAR): " The Company and Mr. Bridge have mutually agreed to end Mr. Bridge's employment relationship with the Company, to release each other from any claims arising from or related to the employment relationship and to enter into a consulting arrangement pursuant to which Mr. Bridge will continue to act as Chairman of the Board and to perform consulting services for the Company as described below. (a) CONSULTING FEE. The Company shall pay Mr. Bridge a fee of $18,750 -------------- per month for the Consulting Period as a retainer for his services as Chairman of the Board of Directors of the Company and for performing consulting services as specified above. (b) BONUSES. ------- (i) Mr. Bridge acknowledges receipt from the Company of a bonus relating to the first quarter of fiscal year 1998 in the amount of $23,125 (the "Q1 98 Bonus"). " When a company loses money, why should any employee be paid a bonus?!@#. Thoroughly dislogical indeed.